By BW CFO World Online Bureau

Non-filers of 2 monthly GST returns would be barred from filing their GSTR-1 returns as per the Goods and Services Tax Network (GSTN).

Businesses that have not been successful in filing the GSTR-3B returns in the previous two months will not be able to file the details of outward supplies in GSTR-1 from September 1 said the GST network.

The businesses usually file their GSTR-1 by the 11^th of the month. GSTR-3B through which businesses pay taxes is filed in an unusual manner between the 20^th and the 24^th of the following month.

GTSN mentioned in an advisory to their taxpayers that rule 59(6) of central GST Rules which is a base for the restrictions in the filing of GSTR-1, will advance from September 1, 2021.

It is recognized from the rule that a person must not be allowed to dress the details of outward supplies of goods or services or both in the form GSTR-1 if he had not dressed up the returns in the form GSTR-3B for the preceding two months.

For the taxpayers filing a quarterly return, GSTR-1 filing would be restricted if he has not processed the return in form GSTR-3B for the preceding tax period.

EY tax partner Abhishek Jain added on the subject that it was a well-thought step to eliminate the cases where taxpayers although report their supply invoices in GSTR-1 but they do not submit their corresponding GSTR-3B through which taxes are actually paid to the government.

Jain said that this system would result in barring the inflow of tax credit to the customers of a non-compliant vendor.

(PTI)