As per the notification issued by the CBIC, a GST registered Taxpayer will not be able to furnish his/her FORM GSTR-1 if he/she:

● Has failed to furnish FORM GSTR-3B for the previous two months.
● Has failed to furnish FORM GSTR-3B for the previous tax period (for quarterly filers).
● Is restricted from using the amount available in his/her electronic credit ledger to discharge his/her liability towards tax, in excess of ninety-nine per cent of such tax liability (under rule 86B) and has not furnished his/her FORM GSTR-3B for the preceding tax period.
Note: These taxpayers will not be allowed to use the Invoice Furnishing Facility (IFF) as well.

However, the GSTR-1 filing facility will be unblocked/enabled as soon as the relevant GSTR-3B is filed.

When a Taxpayer does not file his/her GSTR-1, the purchaser/counterparty will not be able to claim the eligible Input Tax Credit (ITC) on the purchases because GST returns are inter-linked. When invoices are not uploaded in the suppliers GSTR-1, the details will not reflect in the purchasers GSTR-2A and GSTR-2B. This will lead to inconveniences to the purchaser as he/she will be denied the eligible credit. This can affect business relations and cycle adversely.

_________________________________________________________________________

About us

Masters India is a GST Suvidha Provider (GSP) appointed by the Goods and Services Tax Network (GSTN), a Government of India enterprise. We offer tax and financial automation products to enterprises. Know more about us here: https://www.mastersindia.co/

Media Contact Information
Email: [email protected]