GSTN has said that businesses which have not filed GSTR-3B return in the last two months will not be able to file the details of outward supplies in GSTR-1 from September 1.
While businesses file GSTR-1 for a particular month by the 11th day of the following month, GSTR-3B, through which businesses pay taxes, has to be filed in a sequential manner between 20-24th day of the following month. goes. GSTN, which manages the technology backbone for Goods and Services Tax, said in an advisory to taxpayers that Rule-59(6) of the Central GST Rules which provides for restrictions in filing GSTR-1, will be applicable from September 1. will apply. 2021.
As per the rule, a registered person will not be allowed to furnish the details of outward supply of goods or services or both in Form GSTR-1, if he has not furnished the return in Form GSTR-3B for the last two months.
For taxpayers filing quarterly returns, GSTR-1 filing will be restricted if they have not furnished returns in Form GSTR-3B for the preceding tax period. EY Tax Partner Abhishek Jain said this is a well thought out restriction and a necessary control check to eliminate cases where taxpayers report their supply invoices in GSTR-1 (due to frequent follow-up on the part of recipients). But they do not submit their respective GSTR-3B return through which the tax is actually paid to the government. Jain said, “Compliant taxpayers will appreciate this move as till now their input tax credit was also at risk if vendors do not file their GSTR-3B, even if such invoice appears in GSTR-2A. ” AMRG & Associates Senior Partner Rajat Mohan said that from 1st September, GSTN is implementing GST rules which bar a taxpayer from filing GSTR 1, in which the taxpayer has not paid taxes for the last two consecutive tax periods. . “This system will result in stoppage of the flow of tax credit to customers of non-compliant vendor,” Mohan said, adding that the implementation of this rule on the GST portal would be fully automated and digital, thereby allowing any separate approvals. will not be necessary. Mohan asked the tax authorities to restore the facility of filing GSTR-1.
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