Arjuna (Fictional Character): Krishna, which new rule has been implemented by CBIC on GST Portal from 1st September 2021?

Krishna (Fictional Character): Arjuna, Rule 59(6) of CGST Rules, 2017 providing for restriction in the filing of GSTR-1 has been inserted by the CBIC vide Notification No. 1/2021 dated 1st January 2021 which will be implemented on GST Portal from 1st September 2021.

Arjuna (Fictional Character): Krishna, what are the cases in which such restrictions shall be applicable?

Krishna (Fictional Character): Arjuna, such restrictions in the filing of GSTR-1 shall be applicable in the following cases:

a registered person who has not furnished the return in FORM GSTR-3B for the preceding two months;

For e.g., if you have not filed your monthly GSTR-3B for Jun-2021, you will not be able to file GSTR-1 for the month of Aug-2021.

Now-non-filing-of-GSTR-3B

a registered person who has not furnished the return in FORM GSTR-3B for the preceding tax period in case of quarterly filing.

For e.g., if you have not filed your quarterly GSTR-3B for Apr- Jun 2021, you will not be able to file IFF for the month of Aug-2021.

Arjuna (Fictional Character): Krishna, whether separate approval would be required from the tax officer to restore the facility of filing of GSTR-1?

Krishna (Fictional Character): Arjuna, no separate approval would be needed from the tax officer to restore the facility of filing of GSTR-1 as it will be completely automated similar to the blocking & unblocking of the e-way bill as per Rule-138E and facility for filing of GSTR-1 will be restored immediately after filing of relevant GSTR-3B.

Arjuna (Fictional Character): Krishna, what care should be taken by the taxpayer to ensure compliance with the newly inserted rule?

Krishna (Fictional Character): Arjuna, after the implementation of Rule 59(6), records can be saved in Aug-21 GSTR-1/IFF if the taxpayer fails to file GSTR-3B for the month of Jun-21 but the filing of the same will be permitted only after filing GSTR-3B for the month of Jun-21. Also, 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 afterward may do so at the earliest. This will also help the recipient in availing of Input tax credit uninterruptedly.

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Qualification: CA in Practice
Company: R.B. Sharma and Co
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Member Since: 27 Jan 2018 | Total Posts: 339
1. Vice-Chairmen of WIRC of ICAI for the year 2015-2021. 2. Youngest Chairman of Aurangabad Branch of WIRC of ICAI in 2002. 3. Author of Popular Tax articles series based on Krishna and Arjuna conversation i.e “KARNITI” published in Lokmat on every Monday. Till date 335+ weekly articles ha View Full Profile

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