GST Portal updated to prevent registered persons in default of furnishing the return in FORM GSTR-3B from filing FORM GSTR-1

The Central Board of Indirect Taxes through circular dated 26 August 2021 has announced the Implementation of Rule-59(6 of CGST Rules, 2017 on GST Portal. Rule-59(6) of CGST Rules, 2017 provides for restriction in filing of GSTR-1 in following cases :

1. 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;
2. 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-3Bfor 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:

1. GSTR-3B for the previous two monthly tax-periods (for monthly filers),
2. 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.