Non-filers of 2 monthly GST returns to be barred from filing GSTR-1 from September 1

Businesses that have not furnished the return in form GSTR-3B for the preceding two months will not be allowed to furnish the details of outward supplies of goods or services in Form GSTR-1 from September 1, the Goods and Services Tax Network (GSTN) said today.

Businesses usually file GSTR-1 of a particular month by the 11th day of the subsequent month, GSTR-3B, a form that's used by businesses to pay taxes, is filed in a staggered manner between the 20th-24th day of the succeeding month.

GSTN that handles the technology backbone for the Goods and Services Tax said Rule-59(6) of CGST Rules, 2017, provides for restriction in the filing of GSTR-1 in certain cases.

The GSTN said Rule-59(6) of CGST Rules, 2017, provides for restriction in the filing of GSTR-1 in certain cases, which will come into force on September 1.

According to the rule, a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both in Form GSTR-1, if he has not furnished the return in Form GSTR-3B for the preceding two months. For taxpayers filing the quarterly return, GSTR-1 filing would be restricted if he has not furnished the return in Form GSTR-3B for the preceding tax period.

"This check will operate on clicking the SUBMIT button of GSTR-1 and the system will give an error message if the condition of Rule-59(6) is not met. It may be noted that records that have been saved in GSTR-1 will remain saved and filing of such records will be permitted after Rule-59(6) is complied with," GSTN said.

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It said implementation of Rule-59(6) on the GST portal will be completely automated, similar to the blocking and unblocking of the e-way bill as per Rule-138E and facility for filing of GSTR-1 will be restored immediately after the filing of relevant GSTR-3B.

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No separate approval would be needed from the tax officer to restore the facility for filing of GSTR-1, it added. To ensure no disruption in filing GSTR-1/IFF, taxpayers who have not filed their pending GSTR-3B, especially from the period November 2020 and afterwards, may do so at the earliest, the GSTN said.

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