Portal changes. Non-filers of 2 monthly GST returns to be barred from filing GSTR-1

Businesses not filing GST return forms (GSTR 1 and GSTR 3B) in a month will not be allowed to file immediate next returns. The GST administration has made changes in the portal to implement this.

The move is aimed at curbing issuance of fake invoices and tax evasion.

GSTR 1 has invoice-wise details of outward supplies along with total tax liability and it allows the receiver of supply to claim Input Tax Credit (ITC). Here, tax is not to be paid. GSTR 3B gives details of outward and inward supplies, ITC claimed and the tax to be paid in cash (total tax liability minus ITC). Not filing returns means the government not getting revenue.

Changes in returns filing is based on addition of new provisions under Section 37 (Furnishing details of outward supplies) and Section 39 (Furnishing of returns) through the Finance Act, 2022. Accordingly, a notification issued stating that these changes will come into effect from October 1 and now an advisory has been issued.

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Section 37(4) prohibits a taxpayer from furnishing the details of outward supplies for a tax period, if the details of outward supplies for any of the previous tax periods has not been furnished by him. Similarly, Section 39(10) restricts a taxpayer from furnishing a return for a tax period if the return for any of the previous tax periods or the details of outward supplies for the said tax period has not been furnished.

New norms

“These changes are being implemented prospectively and will be operational on GST Portal from November 1. Accordingly, from October tax period onwards, the filing of previous period GSTR-1 will be mandatory before filing current period GSTR-1. Filing of October period GSTR-1 will be mandatory before filing GSTR-1 of November period,” the advisory said.

Further, from October tax period onwards, filing of GSTR-1 will also be mandatory before filing GSTR-3B. “Taxpayer will not be allowed to file GSTR-3B for October period if GSTR-1 of October period is not filed, the advisory said.

Due date for monthly filing of GSTR 1 for previous month is 11^th day of next month. In case of GSTR 3B for previous month, it is 20^th day of next month. In case of quarterly filers, due date for GSTR 1 and GSTR 3B of pre would be 13^th day and 22-24^th day of next month, respectively.

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