Monthly GST returns: Non-filers will be barred from filing GSTR-1 from Jan 1

From January 1 next year, businesses defaulting on filing the summary returns and paying monthly GST (Goods and Services Tax) will not be allowed to file GSTR-1 sales returns for the succeeding month.

At its September 17 meeting, the GST Council had taken the decision to take a slew of measures to rationalise compliance, comprising mandatory Aadhaar authentication for companies to file refund claims.

The moves would help check revenue leakage in view of evasion of GST. The Council resolved to amend Rule 59(6) of the Central GST Rules from January 1, 2022, to provide that a registered person would not be permitted to submit form GSTR-1 if he has not furnished the return in Form GSTR-3B for the prior month.

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Currently, the law restricts the filing of return for outward supplies or GSTR-1 in case a business fails to file GSTR-3B of the preceding two months.

While businesses file GSTR-1 of a particular month by the 11th day of the subsequent month, GSTR-3B, through which businesses pay taxes, is filed in a staggered manner between the 20th-24th day of the succeeding month.

The Council has also made the Aadhaar authentication of GST registration mandatory for being eligible for filing refund claim and application for revocation of cancellation of registration.

The Central Board of Indirect Taxes and Customs (CBIC) had notified Aadhaar authentication for GST registration with effect from August 21, 2020.

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The notification also provided that in case businesses do not provide Aadhaar number, then GST registration would be granted only after physical verification of the place of business.

The Council has now decided businesses will now have to link their GST registration with biometric Aadhaar for claiming tax refunds as also applying for revocation of cancellation of registration.

The Council, comprising central and state finance ministers, in its 45th meeting also decided that GST refunds will be disbursed in the bank account, which is linked with the same PAN on which registration has been obtained under GST.

(With inputs from PTI.)