Non-filers of 1 monthly GST return would be prohibited from submitting GSTR-1 from 01.01.2022

Businesses that fail to file a summary return or pay monthly GST by the 1st of January next year will be unable to file a GSTR-1 sales return for the following month.

The GST Council resolved on several of the steps to ease compliance during its September 17 meeting in Lucknow, including mandating Aadhaar authentication for businesses filing refund claims.

These steps would aid in preventing revenue leakage as a result of GST evasion, which was implemented on July 1, 2017.

With effect from January 1, 2022, the Council agreed to alter Rule 59(6) of the Central GST Rules to specify that a registered person will not be supposed to file Form GSTR-1 if he has not filed the previous month’s return in Form GSTR-3B.

Currently, the law prohibits, when a company fails to file its preceding two months’ GSTR-3B tax return, it can no longer file the return for external supplies, or GSTR-1.

However, businesses must file GSTR-1 by the 11th day of each subsequent month, whereas enterprises pay taxes by filing GSTR-3B on a staggered schedule between the 20th and 24th day of the next month.

In addition, the Council has made Aadhaar authentication of GST registration compulsory in order to be eligible for refund claims and applications for revocation of cancellation of registration.

Aadhaar authentication for GST registration has been notified by the Central Board of Indirect Taxes and Customs (CBIC) and will go into effect on August 21, 2020.

At its 45th meeting, the Council of Finance Ministers, which includes both state and central government officials, also determined that GST refunds will be sent to the same bank account as the PAN used to get registration under the GST.