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NON-FILERS OF GSTR-3B NOT ALLOWED TO FILE GSTR-1: RULE-59(6) IMPLEMENTED ON GST PORTAL

Blocking of the GSTR1 repository has been announced by the addition of a new sub-rule(6) under rule 59 of the CGST rule. The Central Commission for Indirect Taxes and Customs (CBIC) has released an update vide Notification no. 94/2020 on December 22, 2020. This rule deals with the form and manner of providing details of outbound deliveries.

Rule-59(6) implemented on GST Portal: Non-Filers of GSTR-3B cannot file GSTR-1

Implementation of Section (a) of Rule 59 of the CGST Rule, 2017 was amended by Notification No. 35 /. 2021-Central tax from September 24, 2021. Starting from January 1, 2022, the word “for the preceding two months” has been replaced by the word “for the preceding month”. 

In other words, As of January 1, 2022, if a monthly applicant has not filed a GSTR3B for the previous month, they won’t be able to generate a GSTR1 for the following month until the GSTR3B for the previous month is filed. 

59 (6) Notwithstanding the content of this rule:

(a) Registrants are not allowed to provide details of the supply of goods or services or both under section 37 of FORM GSTR1 if they have not provided a declaration on FORM GSTR3B within the previous two months

(b) A registered person, required to provide quarterly reports pursuant to subsection (1) of section 39, may not provide details of the supply of goods or services or both under 37 in FORM GSTR1 or by using the billing facility if the person has not provided a return in FORM GSTR3B for the previous fiscal period.

This feature will be added soon on the GST portal. The system will then review the previous month’s GSTR3B filing before allowing it to submit the next month’s GSTR1. 

For example, suppose a taxpayer has not filed a monthly GSTR3B for November 2021. Now, the taxpayer tries to file a GSTR1 for December 2021 on January 10, 2022. The system won’t allow GSTR1 to be filed for December 2021 and only submission of GSTR3B in November 2021 after submission of GSTR1 in December 2021 will be allowed.

To avoid any inconvenience, taxpayers must file GSTR1 and GSTR3B in a timely manner according to Rule 59 of the 2017 CGST Rule.