Till next month, taxpayers who have not yet filed their GSTR-3B Returns will not be allowed to be filed for the last two months GSTR -1 return form. This rule change was announced by Goods and Services Tax Network (GSTN) last week on August 26. The new rule is set to come into effect from September 1 and will be implemented as per the notice issued by GSTN under Rule-59(6) of the CGST Rules, 2017. This new rule change is also applicable to those taxpayers who have not submitted their Form GSTR-3B for the previous quarter also.
In the advisory circulated on Thursday, the authority said, “A registered person shall not be permitted to furnish the details of outward supply of goods or services or both under section 37 in Form GSTR-1, if he did not furnish the return.” Is. Form GSTR-3B for the last two months.”
Form GSTR-1 is essentially a monthly or quarterly return filed by taxpayers to disclose the details of their outward supplies for a particular month of the quarter along with their tax liabilities. Form GSTR-3B, on the other hand, is a monthly summary to be filed by the taxpayers by the 20th of every subsequent month or by the 22nd or 24th of the month following a particular quarter. This form basically discloses the supplies made during the month along with GST which is yet to be paid, input tax credit claimed, purchases on reverse charge applicable and so on.
“A registered person, who is required to furnish return for every quarter under the provision of sub-section (1) of section 39, shall be required to furnish the details of outward supply of goods or services or both under section 37 in Form GSTR. 1 or using the facility of furnishing invoice, if he has not furnished the return in Form GSTR-3B for the preceding tax period,” GSTN added.
After the new rule comes into force on September 1, 2021, the system will be directed to check whether the individual has actually filed GSTR-3B for the last two monthly tax periods as well as for the previous quarterly tax-period. Based on this, the system will bar the filing of GSTR-1/IFF unless Rule-59(6) is complied with, the statement said.
GSTN in the press release said, “This check will work on clicking SUBMIT button of GSTR-1 and the system will give an error message if the condition of Rule-59(6) is not fulfilled. It may be noted that GSTR – 1 shall be saved and such records shall be allowed to be filed after compliance of Rule-59(6).
It was also mentioned that the implementation of Rule-59(6) on the GST Portal would be fully automated. “…similar to blocking and un-blocking of e-way bill as per Rule-138E and the facility of filing GSTR-1 shall be restored immediately after filing of relevant GSTR-3B. No separate approval from the tax-official would be required to restore the facility of filing GSTR-1,” the notice mentioned GSTN.
GSTN also gave an additional provision. It had mentioned that in order to ensure that there is no disruption in the process of filing GSTR-1 / IFF, taxpayers who have not yet filed their pending GSTR-3B, especially from November 2020 and onwards. From the period, they are allowed. To do so at the earliest possible time.
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