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Flow of Invoices between Supplier and Recipient

Documents (Invoices, Credit Notes, and Debit Notes) uploaded by a Supplier in their FORM GST ANX-1 show up in FORM GST ANX-2 of respective recipients in near real time. As mentioned in the article on All about ITC, the Recipient may claim ITC on an Invoice of a particular month that is uploaded before the 10th of the succeeding month. The Recipient can also Reject an erroneous document or keep it Pending and claim ITC in a future month. The flowchart below describes the actions that a Recipient may take against Invoices uploaded by the Supplier.

Actions to be taken by Recipient against Supplier Invoices

Only the Supplier can modify or edit details of an Invoice. The flow chart below shows state changes after various actions by the recipient and when edits are allowed by the Supplier.

When a Supplier uploads an Invoice, it is in state Uploaded and immediately visible to the Recipient. The Recipient can Accept the Invoice if they have fulfilled all conditions for claiming ITC (see All about ITC for more details). Once the Recipient accepts the Invoice, the Invoice is locked for editing by the Supplier. In case the Invoice is correct and the Recipient marks the Invoice as Pending for claiming ITC at a future date, the Invoice is again locked for editing by the Supplier. The Recipient can Unlock the Invoice to allow the Supplier to edit it again. Rejected Invoices are editable by the Supplier and become visible to the Recipient after they are corrected by the Supplier.

Flow of Invoice Between Supplier and Recipient