Implementation of Rule 59(6) of CGST Rules, 2017 - restriction in filing of GSTR-1 in certain cases
Rule 59(6) of CGST Rules, 2017 which specifies restricting filing of GSTR 1 is being made operational on the GST Portal from 1st September 2021.
A. Legal Provision
Rule-59(6) of CGST Rules, 2017, inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in filing of GSTR-1 in certain cases:
- a registered person shall not be allowed to furnish the GSTR 1, if he has not furnished the return in FORM GSTR-3B for preceding two months;
- a registered person, required to furnish return for every quarter under the proviso to sub-section (1) of section 39, shall not be allowed to furnish FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3Bfor preceding tax period;
B. Implementation Mechanism on GST Portal
On implementation of the said Rule, the system will check that whether before the filing of GSTR-1/IFF of a tax-period, the following has been filed or not:
- GSTR-3B for the previous two monthly tax-periods (for monthly filers), OR
- GSTR-3B for the previous quarterly tax period (for quarterly filers), as the case may be. The system will restrict filing of GSTR-1/IFF till Rule-59(6) is complied with.
This check will operate on clicking the SUBMIT button of GSTR-1 and the system will give an error message if the condition of Rule-59(6) is not met. It may be noted that records which have been saved in GSTR-1 will remain saved and filing of such records will be permitted after Rule-59(6) is complied with.
Implementation of Rule-59(6) on the GST Portal will be completely automated and facility for filing of GSTR-1 will be restored immediately after filing of relevant GSTR-3B. No separate approval would be needed from the tax-officer to restore the facility for filing of GSTR-1.
C. Action to be taken by Tax Payers
To ensure no disruption in filing GSTR-1/IFF, taxpayers who have not filed their pending GSTR-3B, especially from period November 2020 and afterwards may do so at the earliest.
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