The CBIC vide Notification No. 35/2021–Central Tax dated September 24, 2021 has further amended Central Goods and Services Tax Rules, 2017 (“CGST Rules”) to adhere to the recommendations of 45th GST Council meeting held on September 17, 2021.
Background:
The GST Council in it’s 45th meeting made inter-alia a recommendation that, Rule 59(6) of the CGST Rules is to be amended with effect from January 01, 2022 to provide that a registered person shall not be allowed to furnish Form GSTR-1, if he has not furnished the return in Form GSTR-3B for the preceding month.
Currently, registered persons are allowed to furnish Form GSTR-1, if he has not furnished the return in Form GSTR-3B for the preceding two months.
Notification:
Giving effect to the recommendation of GST Council meeting, the CBIC vide this Notification has amended CBIC Rules as under:
In Rule 59 of the CGST Rules, in sub-rule (6), with effect from the January 01, 2022, –
(i) in clause (a), for the words “for preceding two months”, the words “for the preceding month” shall be substituted;
(ii) clause (c) shall be omitted
Rule 59(6) ibid now reads as under:
“(6) Notwithstanding anything contained in this rule, –
(a) a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month;
(b) 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 the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period;”
Further, clause (c) of Rule 59(6) of the CGST Rules is to be omitted. The clause (c) states that, “a registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, shall not be allowed to furnish the details of outward supplies of goods or services or both under section 37 in FORM GSTR-1 or using the invoice furnishing facility, if he has not furnished the return in FORM GSTR-3B for preceding tax period.”
Conclusion:
A registered person shall not be allowed to furnish Form GSTR-1, if he has not furnished the return in Form GSTR-3B for the preceding month. Currently, this restriction applies after non-filing of GSTR-3B for preceding two months.
Note: Supra amendments in CGST Rules shall be effective from January 01, 2022.
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-35-central-tax-english-2021.pdf