Attention to all taxpayers – File your pending GSTR-3B immediately

Rule 59(6) provides restriction on tax payers from filing GSTR-1/IFF

1) Applicable – W.e.f 1st of September, 2021

2) Title – Rule-59(6) to be implemented on the GST Portal

Rule 59(6) provides restriction on tax payers from filing GSTR-1/IFF

If GSTR-3B for last two months are not filed

(For monthly filers) then put restriction from filing GSTR-1

If GSTR-3B for previous quarter is not filed

(For quarterly filer) then put restriction from filing IFF

4) Why this rule was introduced?

Register persons filed the GSTR-1/ IFF and transfer benefits of ITC to recipient without actual payment of the tax liability through GSTR-3B.

Rule 59(6) of the CGST Rules, 2017 aims at curtailing this practice.

5) What happen if you file GSTR-1 with correct details and file GSTR-3B with nil returns to avoid taxes? 

No, In this case, Rule 59(6) is not attracted but Rule 21A(2A) of CGST Rules, 2017 for significant difference in GSTR-1 and GSTR 3B which will eventually lead to cancellation of your GST Registration.

6) What is Impact of Rule 59(6) on filing of GSTR-1/IFF of August, 2021 period:

For Monthly filer

If you have not filed your monthly GSTR-3B for June-2021, You will not be able to file GSTR-1 of August, 2021.

For Quarterly filer

If you have not filed your quarterly GSTR-3B for Apr-Jun-2021, You will not be able to file IFF of August, 2021.

Attention all

Records can be saved in August-2021 GSTR-1/IFF and filing of such records will be permitted only after filing GSTR-3B for June, 2021.

Sources – As per Notification No. 1/2021 – Central Tax dated 1st January 2021 and GST Portal.