Non-Filers of GSTR-3B not allowed to file GSTR-1: Rule-59(6) implemented on GST Portal

Clause (a) of sub-rule (6) of Rule 59 of the CGST Rules, 2017 was amended by Notification No. 35/2021 – Central Tax dated September 24, 2021. With effect from January 1st, 2022, the words “for the preceding two months” were substituted for the words “for the preceding month.” This means that beginning January 1, 2022, if a monthly filer has not filed the GSTR-3B for the preceding month, he or she will be unable to file the GSTR-1 for the following month until the GSTR-3B for the preceding month is filed.

“59 (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 preceding two months;

(b) a registered person, required to furnish a 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 functionality will be added to the GST Portal soon, after which the system will check the previous month’s GSTR-3B filing before allowing you to file GSTR-1 for the following month.

As an example, suppose a taxpayer has not filed the monthly GSTR-3B for November 2021. Now, the taxpayer attempts to file GSTR-1 for December 2021 on January 10th, 2022. The system will not allow the filing of GSTR-1 for December 2021, and will only allow the filing of GSTR-3B for November 2021 after the filing of GSTR-1 for December 2021.

To avoid any inconvenience, taxpayers should ensure timely filing of GSTR-1 and GSTR-3B in accordance with Rule 59 of the CGST Rules, 2017.