Key Highlights

• ITC is increasingly shaped by system-based matching and recipient actions (IMS behavior matters). GST Tutorial+1
• Pending records don’t live forever: portal FAQs link “pending” behavior to timelines. GST Tutorial
• Notices are becoming more workflow-oriented, including mismatch communication routes. GST Tutorial+1

In 2026, ITC is not just a tax concept—it’s your working capital engine. But the rulebook is no longer only “keep invoice and claim credit.” The system ecosystem (GSTR-2B, IMS actions, mismatch intimations) is increasingly decisive. GST Tutorial+1

Why ITC equals cash flow
Every rupee of eligible ITC reduces the cash you must pay out in GSTR-3B. If your ITC gets blocked, delayed, or disputed, you feel it like an interest-bearing loan—except the lender is your own operations.

What role does IMS play in ITC outcomes?
GST portal FAQs on IMS describe how accepted/rejected records get cleared on filing, while pending records continue until cut-off logic. GST Tutorial
That means: “I’ll check later” is no longer harmless. Pending can turn into missed credit if you don’t manage it with deadlines in mind.

A 2026 risk many teams underestimate: credit note impact
Government communications around IMS and related legal framework have highlighted the need for proper ITC reversal attributable to credit notes (so supplier output tax reduction aligns with recipient reversal). Press Information Bureau
In practice: if vendors issue credit notes and your team doesn’t reverse correctly, disputes brew.

Mismatch paths are becoming more system-visible
Guidance exists for mismatch intimations (like ITC mismatch pathways) and how taxpayers can view them in the portal. GST Tutorial
Also, CBIC circulars discuss situations involving denial of ITC and related communications. CBIC GST

Micro-questions that protect ITC

• “Is this invoice visible and correctly reflected in system-generated views?” GST Tutorial
• “Have we actioned invoices instead of leaving them pending?” GST Tutorial
• “Do credit notes issued by suppliers have matching reversals on our side?” Press Information Bureau
• “Did we check the portal for mismatch intimations?” GST Tutorial

Cashflow-first ITC discipline for 2026

1. Weekly vendor reconciliation (not monthly panic).
2. IMS actioning as a routine task. GST Tutorial
3. Clear SOP for credit notes and reversals. Press Information Bureau
4. Early response to mismatch intimations, not end-of-quarter firefighting.