1. GSTR – 1 BLOCKING IF GSTR 3B NOT FILED– Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1 if he has not furnished the return in FORM GSTR-3B for the preceding month.

2. Rule 36(4) amendment for 16(2)(aa)– Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.

3d Illustration GST Tax holding business man,business Concept

3. Late fees for GSTR -1– Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.

Combined reading of these 3 proposed changes by Council in 45th Meeting points

>Late Fees of GSTR 1 >No GSTR 1 if 3B not filed > ITC restrictions- U can claim upto 2B of 11th /13th only Section 16(2)(aa)

I have made A case study


X Ltd. Filed GSTR 1 of JAN 22 ontime, But not able to file GSTR 3B of JAN’22, Due to financial crunch Till 11th March (ONLY 20 days passed from Due date 20th Feb) As last GSTR 3B not file then x Ltd is not able to file GSTR1 of FEB

NOW BCZ OF 16(2)(aa) Counter party not getting FEB ITC  in their GSTR 2B


1. Counter parties will flight & stop business as FEB ITC NOT appearing in their GSTR 2B

2. In addition to that Counter party will hold payments for JAN-FEB bills

3. JAN-FEB late filling attract interest and Late fees in both GSTR 1 & 3B as per GST rules

4. Even no new sales once every party got to know that X Ltd not able to upload his GSTR 1 for FEB Just see the vicious circle This madness of Late fees should stop

Business will be complete stand still, If you miss bus for 1 month& there will be big Problems.

Of course such cases will be few But we all have such clients who faces Financial difficulties and File 3B late That’s why I was saying that It is not less than Horror

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October 2021