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 11th of the month. GSTR-3B through which businesses pay taxes is filed in an unusual manner between the 20th and the 24th 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.