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Aakash kothari

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Forgotten to file GSTR-3B for the past two tax periods? The GSTR-1 return filing facility will be Blocked for you beginning September 1, 2021. For enterprises that have chosen the QRMP scheme, this includes the blocking of the invoice furnishing facility (IFF) on the portal. This guideline aims to ensure that GST returns are filed on time and that the process is not slowed down. This rule continues the blocking of an e-way bill generation facility, which will take effect on August 15, 2021.

The GSTR-1 Filing will be Blocked if GSTR-3B Returns are not filed

Everything you need to know about the blocking of GSTR-1 and IFF filings.

Non-filing of GSTR-3B, as per previous requirements, resulted in the suspension of e-way bill creation. However, under the new laws, the registered person’s e-way bill as well as GSTR-1 will be blocked. Furthermore, if a taxpayer is obligated to file GSTR-3B as a result of the implementation of Rule 86B and fails to do so, his GSTR-1 will be blocked.

GST Portal: Implementation of Rule 59(6)

This will be implemented on the GST portal on September 1, 2021. An error is thrown when a taxpayer attempts to save data from GSTR-1 or use IFF for August 2021 and selects the “Submit” button for filing in this situation. Two months in a row (until July 2021) or one quarter of pending GSTR-3B returns will be flagged by this feature (ending 30th June 2021). The taxpayer should file any overdue GSTR-3B returns before filing GSTR-1.
System-automated filing prevents tax officers from intervening.

The impact of the GSTR-1 file being blocked

If a taxpayer fails to file GSTR-1, the counterparty will be unable to collect the credit for the purchase. Invoices that are not uploaded in GSTR-1 will not be reflected in the counterparty’s GSTR-2A and GSTR-2B. As a result, the recipient will be denied credit automatically.

Business impact on blocking of GSTR-1 or IFF failing

Vendor management will once again play an important part in the implementation of this rule. One of the enabling elements for you to claim the input tax credit will be the vendor’s GST compliance. As a result, financial and payment is expected to shift, with buyers preferring to do business with GST-compliant suppliers.

Make sure that GSTR-3B returns for past tax periods are filed as a preparation for this new rule. Also, go over your present vendors again, assess them, and discover compliance vendors.

What is the best way to solve the problem?

The filing of GSTR-3B results in the unblocking of GSTR-1.

In what ways can Plus Accounting Software help businesses stay in compliance with GST regulations?

GST management with Plus Accounting Software is simple and quick. Plus Accounting Software is a one-stop solution for managing GST easily and efficiently, from producing tax invoices to completing GST returns. Plus Accounting Software’s intuitive intelligence allows you to generate 100 percent correct returns in a matter of minutes. This guarantees that your returns are correct and, more importantly, that you file them on time.

Plus Accounting Software has a fully integrated solution for quickly generating e-invoices and e-way bills without the need for user involvement. Have you ever used Plus Accounting Software? Try it out for free.

 

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