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Filing of GSTR 1 Incase of Non-Filing of GSTR 3B of Previous Period


Last Updated on May 16, 2023 by Kanakkupillai

Filing of GSTR 1 Incase of Non-Filing of GSTR 3B of Previous Period

Through the addition of a new sub-rule namely, the sub-rule (6) to the main Rule 59 of the CGST Rules has notified officially the blocking of filing or submission of form namely, GSTR-1. The introduction of such rule or update was released by the CBIC or the Central Board of Indirect Taxes and Customs on the date of 22ndDecember2020, through the uploading of a notice with the number, ‘no. 94/2020’. This regulation governs the format and manner in which outward supplies are delivered by the entity to the consumer.

Blocking of GSTR-1 and IFF Filing

If a registered person or the taxpayer does not file form namely, GSTR-3B return for the previous period of two months, he will be unable to furnish details about the conducting or any outward supply of goods or services, or both, in the form namely GSTR-1. This is what is covered and made clear using the CGST Rule 59 sub-rule (6).
Furthermore, if the taxpayer has chosen to file returns on a quarterly basis under the QRMP or the Quarterly Return Filing and Monthly Payment of Taxes scheme, he will not be able to declare B2B sales on the IFF or the Invoice Furnishing Facility or file GSTR-1 if the GSTR-3B for the previous quarter is still outstanding or not filed.
Non-filing of GSTR-3B resulted in blocking of generation of e-way bills, as per provisions that were stated previously. However, under the new laws or rules, the e-way bill as well as the registered person’s GSTR-1 will be blockedmaking it unable to file the same. In addition, if a taxpayer is compelled to file GSTR-3B as a result of Rule 86B’s application and fails to do so, his GSTR-1 will also get blocked not allowing him to file the same.
If a taxpayer does not file GSTR-3B for the months of April and May, for example, then his GSTR-1 for the month ofJune will be blocked and would not be allowed to file the same. If a quarterly return filer fails to file the form GSTR-3B for the previous tax period, he will not be allowed to file GSTR-1 for consecutive quarters also. The government’s principal goal is to track down non-filers and bring them into compliance with the provisions of the Acts and also the allied rules.

Implementation of Rule 59(6) on the GST Official Portal

Starting from 1st of September2021, the GST portal will deploy or apply the provisions of the Rule 59(6). And as a result, the system will raise an error message, if a registered person or the taxpayer attempts to save GSTR-1 data or even use IFF for the month of August 2021 and subsequently clicks the button namely, ‘Submit’.
Any GSTR-3B returns which are delayed in filing are flagged for two months, say up to July 2021 or one quarter that is ending 30th June 2021. To complete GSTR-1 filing, the taxpayer should file any outstanding or delayed and not filed GSTR-3B returns.
As the filing is system-automated, tax authorities or any of its officials cannot intervene or take an action for rectifying the situation and helping you unblock it.

What Impact Does the Blocking of GSTR-1 Filing Brings in?

When a registered person or taxpayer does not file or is blocked from filing form GSTR-1, then the counterparty will not be able to claim credit of GST paid on a purchase made by him. If invoices are not uploaded in the form GSTR-1, the transaction will not be reflected in the counterparty’s forms GSTR-2A and GSTR-2B also. As a result, the recipient will be denied credit automatically making the problem complicated.

Resolving the Issue

GSTR-1 will be unblocked once and only once GSTR-3B is filed by the registered person or the taxpayer. The government wants taxpayers to follow the rules, and comply with the same due to which these additional measures have been added to the rules and regulations already put in force or place by the authorities.

Latest Updates on GSTR-1

Date: 21st December 2021

  • Beginning from 1st of January2022, taxpayers who have not filed a GSTR-3B for the prior period would be unable to file the form GSTR-1.
  • Beginning from 1st of January 2022, GST officers will be able to commence recovery proceedings from those registered persons or the taxpayers who have evidently under-reported theirearnings through sales in the form GSTR-3B compared to GSTR-1 without having to issue a show-cause notice.

Date: 29th August 2021

As per the CGST notification number 32/2021 which is issued on the date of 29thAugust2021 allows company taxpayers to continue reporting GSTR-1 and GSTR-3B utilising the EVC (Electronic Verification Code) or DSC (Digital Signature Certificate) until the 31st of October 2021.

Date: 26th August 2021

If taxpayers have unresolved the issue or filing of GSTR-3B, they will not be allowed to file GSTR-1 or use the IFF for the month of August 2021 on the GST official portal starting from the date of 1stSeptember 2021. It applies if, according to CGST Rule 59, GSTR-3B has been outstanding for the past two months in case of a taxpayer who is a monthly filer or the last quarter in case of a quarterly filer till the month of July 2021.

Date: 28th May 2021

In its 43rd meeting, the GST Council made the following recommendations:

  • The deadline or the due date for filing GSTR-1 for May 2021 has been extended from 11th of June to 26th of June.
  • The deadline or the due date for QRMP taxpayers to furnish or file B2B sales invoices in IFF for May 2021 has been extended from 13th of June 13 to 28th of June.
  • GST taxpayers have been granted authority to authenticate returns using an EVC rather than using a DSC until the date of 31st August 2021.
  • For future tax seasons or periods, the late fee has been rationalised as follows:
  • If the preceding financial year’s annual turnover was lower than INR 1.5 Crore, then a late fee of up to INR 2,000 per report might be levied by the GST Authorities, i.e.,INR 1000 each for CGST and SGST.
  • The maximum late fee of INR 5,000 per return can only be charged or levied if the turnover of the taxpayer is between INR 1.5 Crore and INR 5 Crore, i.e.,INR 2500 each for CGST and SGST.
  • A late fee of up to INR 10,000, i.e.,INR 5000 per CGST and SGST might be charged or levied if the turnover exceeds INR 5 Crore.

Date: 01st May 2021

(1) The deadline for filing GSTR-1 for April 2021 has been extended from May 11 to May 26.
(2) For April 2021, the deadline for submitting B2B supply on the IFF (optional facility) has been extended from May 13 to May 28.

Date: 09th January 2021

If a registered person or a taxpayer with an annual aggregate turnover of INR5 Crore does not enrol in the QRMP scheme under GST, he will be treated as a monthly filer of GSTR-1 and GSTR-3B that will begin from the month of January 2021. As a result, GSTR-1 will be due on the 11thof the following month, and GSTR-3B will be due on the 20thof the month that is following.

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