Implementation of Rule-59(6) on GST Portal from 1st September 2021 for blocking GSTR-1

Implementation of Rule-59(6) on GST Portal from 01.09.2021 for blocking of furnishing of FORM GSTR-1

Rule-59(6) of CGST Rules, 2017 was inserted vide Notification No. 1/2021 dated 1st January 2021, provides for blocking of furnishing of FORM GSTR-1 and invoice facility if GSTR-3B not filed as under:

(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 preceding two months;

(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;

This Rule will be implemented on GST Portal from 1st September, 2021. 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:

(a) GSTR-3B for the previous two monthly tax-periods (for monthly filers),

OR

(b) 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, similar to the blocking & un-blocking of e-way bill as per Rule-138E 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.

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.

• First-time experience in filing appeal a reasonable & bona fide cause for delay
• Non-disclosure of destination place in documents no ground for seizure u/s 129 of GST Act.
• Charging of exorbitant interest in commercial transactions not against morality or justice
• Assessees not required to prove “source of the source‟ of funds Prior to Finance Act 2022
• During pendency before settlement commission, assessee have right to contest assessment