Implementation of GSTR-1 filing-restriction for non-filing of GSTR-3B

The Goods and Services Tax Network (“GSTN”) has issued Advisory dated January 03, 2022 regarding the implementation of Rule 59(6) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) i.e., GSTR-1 filing-restriction for non-filing of GSTR-3B for previous one month (earlier two), on GST Portal for the taxpayers.

As per Notification No. 35/2021 – Central Tax dated September 24, 2021, clause (a) of the sub-rule (6) of Rule 59 of CGST Rules, 2017 was amended. By way of this amendment, for the words “for preceding two months”, the words “for the preceding month” were substituted with effect from January 01, 2022. This means that from January 01, 2022 onwards, if a monthly filer has not filed the GSTR-3B for the preceding month, then such 

This functionality will be implemented on the GST Portal shortly, after which the system will check the filing of preceding GSTR-3B before permitting to file GSTR-1 for the subsequent month.

Illustration:

A taxpayer has not filed the monthly GSTR-3B for November 2021. Now, the taxpayer tries to file GSTR-1 for December 2021 on January 10, 2022. The system will not allow filing of GSTR-1 for December 2021, and will allow filing of GSTR-1 for December 2021 only after the filing of GSTR-3B for November 2021.

Taxpayers may kindly ensure timely filing of GSTR-1 and GSTR-3B in consonance with Rule 59 of CGST Rules, 2017 to avoid any inconvenience in this regard.

The Advisory can be accessed at - https://www.gst.gov.in/newsandupdates/read/515