The Goods and Service Tax Network (GSTN) has released an advisory dated August 26, 2021 throwing light on the implementation of Rule 59(6) of CGST Rules, 2017 on GST Portal. Rule 59(6) of CGST Rules, 2017 provides for restriction in filing of GSTR-1 in following cases:
- A registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for preceding two months;
- A registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;
This Rule will be implemented on GST Portal from 1st September, 2021. On implementation of the said Rule, the system will check that whether before the filing of GSTR-1/IFF of a tax-period, the following has been filed or not:
- GSTR-3B for the previous two monthly tax-periods (for monthly filers), or
- GSTR-3B for the previous quarterly tax period (for quarterly filers), as the case may be. The system will restrict filing of GSTR-1/IFF till Rule-59(6) is complied with.
GSTN has therefore advised that taxpayers who have not filed their pending GSTR-3B, especially from period November 2020 and afterwards, may do so at the earliest in order to ensure no disruption in filing GSTR-1/IFF.
*Tanvi Singh, Editorial Assistant has reported this brief.