Restriction on filling of GSTR-1 if GSTR-3B not filed

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Non-filers of 2 monthly GSTR3B returns to be barred from filing GSTR-1  

GSTR 1 can not be filed if GSTR3b not filed
Implementation of Rule-59(6) on GST Portal

1. Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, this rule provides for restriction in filing of GSTR-1 in certain cases :

a) GST registered person filing GSTR-1 on monthly basis shall not allowed to file GSTR-1, if he has not filed the return in FORM GSTR-3B for preceding two months*;

*for preceding one month as substituted w.e.f. 01/01/2022 vide notification no Notification No. 35/2021 – Central Tax dated 24th September 2021 

b)  GST registered person filing GSTR-1 on quarterly basis shall not allowed, shall not be allowed to file FORM GSTR-1 or IFF, if he has not furnished the return in FORM GSTR-3B for preceding tax period;

2. 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:

a) GSTR-3B for the previous two monthly^ tax-periods (for monthly filers),

OR

b) 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.

^for preceding one month as substituted w.e.f. 01/01/2022 vide notification no Notification No. 35/2021 – Central Tax dated 24th September 2021

3. This check will operate on clicking the SUBMIT button of GSTR-1 and the system will give an error message if the condition of Rule-59(6) is not met. It may be noted that records which have been saved in GSTR-1 will remain saved and filing of such records will be permitted after Rule-59(6) is complied with.

4. Implementation of Rule-59(6) on the GST Portal will be completely automated, similar to the blocking & un-blocking of e-way bill as per Rule-138E and facility for filing of GSTR-1 will be restored immediately after filing of relevant GSTR-3B. No separate approval would be needed from the tax-officer to restore the facility for filing of GSTR-1.

5. To ensure no disruption in filing GSTR-1/IFF, taxpayers who have not filed their pending GSTR-3B, especially from period November 2020 and afterwards may do so at the earliest.

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