Your GSTR-1 filing could be blocked from 1st January onwards

According to the latest CBIC notification, a new sub-rule (6) under Rule 59 has been introduced, which can lead to the blocking of GSTR-1 filing. This rule primarily deals with the form and manner of furnishing details of outward supplies.

According to this notification, if the taxpayer failed to file GSTR-3B for the preceding 2 months, then he can’t file GSTR-1 and claim a tax refund by providing details of the outward supplies of goods or services. Moreover,  if the GSTR-3B filing is pending for taxpayers who have opted into the QRMP scheme for GSTR filing, he can’t file B2B sales on the IFF or file GSTR-1. This is so because the non-filing GSTR-3B now can result in the blocking of e-way bill generation and filing of GSTR-1. Earlier it was limited to the blocking of e-way bill generation but now extended to GSTR-1 filing.

For instance, if that taxpayer doesn’t file GSTR-3B for July & Aug, then he won’t be allowed to file GSTR-1 for September.

Implementation of the GST portal & its after-effects.

This amendment was implemented on the GST portal from September 2021. This is the reason why people faced an error while saving data for GSTR-1 or using IFF for August 2021, as it automatically tracks the taxpayers who have filed GSTR-3B for the past 2 months. Moreover, tax officers can’t help in unblocking the filing.

As a result, many taxpayers will not be able to claim their credit on purchases as they will not be able to upload the relevant invoices in GSTR-1, which can further affect GSTR-2A and GSTR-2B filing.

As a team of reputed tax consultants, we have heard from enterprises that there are thousands of non-compliant vendors who have not complied with GSTR-3B on an ongoing basis. Now they will not be able to report in GSTR-1, which will lead to credit blockage for thousands of buyers who deal with these non-compliant suppliers. These non-compliant vendors either do not have the means to comply or do not fully understand the filing of GST returns. If you are dealing with such vendors, you can suggest our team for GST filing in Delhi NCR. We will try our best to help them as much as possible.