When GSTR 1 will be blocked?

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When GSTR 1 will be blocked?

The Government had restricted the generation of e way bill if the taxpayer whether a consignor or a consignee had failed to furnish the returns (Form GSTR 1 or Form GSTR 3B) for two consecutive tax periods.  ( Rule 138E of CGST (Rules),2017 was implemented w.e.f. 21st November 2019.)

In order to curb the menace of tax evasion, Government intends to block furnishing Form GSTR 1 if Form GSTR 3B is not furnished where the taxpayer has to settle the liability either by utilizing the input tax credit or making the payment of tax. A sub-rule (5) has been inserted in Rule 59 of CGST (Rules), 2017 vide a CGST Notification no. 94 dated 22nd December 2020.

When Form GSTR 1 will be blocked for taxpayers furnishing monthly returns?

Taxpayers who have to furnish the monthly returns in Form GSTR 1 & Form GSTR 3B will not be permitted to furnish the return in Form GSTR 1 if the return in Form GSTR 3B is not furnished for two consecutive months.

For e.g. If you furnish details in Form GSTR 1 for Jan 2021 & Feb 2021 but do not furnish Form GSTR 3B for both the months of Jan 2021 & Feb 2021 THEN the taxpayer will not be permitted to furnish Form GSTR 1 for the month of Mar 2021.

If Rule 86B is applicable

The time limit of two month’s return in Form GSTR 3B will be reduced to one month’s return in Form GSTR 3B if the restriction on utilization of amount available in electronic credit ledger to discharge the liability under rule 86B is applicable.

For e.g. If you furnish details in Form GSTR 1 for Jan 2021 (Rule 86B is applicable) but do not furnish Form GSTR 3B for the month of Jan 2021 THEN the taxpayer will not be permitted to furnish Form GSTR 1 for the month of Feb 2021.

When Form GSTR 1 will be blocked for taxpayers furnishing quarterly returns?

Taxpayers who have to furnish the quarterly returns in Form GSTR 1 & Form GSTR 3B under the QRMP scheme will not be permitted to furnish Form GSTR 1 or furnish the details of outward supplies using Invoice Furnishing Facility if Form GSTR 3B is not furnished for a quarter.

For e.g. If the taxpayer furnishes a return in Form GSTR 1 for Jan-Mar 2021 but does not furnish the return in Form GSTR 3B for the same quarter (Jan-Mar 2021) THEN the taxpayer will not be permitted to furnish the return in Form GSTR 1 or furnish the details of outward supplies using Invoice Furnishing Facility for the next quarter (Apr-Jun 2021).

When is the generation of e-way bills blocked?

Monthly taxpayer: If the taxpayer fails to furnish either of the monthly returns (GSTR 1 or GSTR 3B) for two consecutive months.

Quarterly taxpayer: If the taxpayer fails to furnish either of the quarterly returns (GSTR 1 or GSTR 3B) for two consecutive quarters.

A snippet of sub-rule (5) of  Rule 59 of CGST (Rules), 2017 vide a CGST Notification no. 94 dated 22nd December 2020 for your reference

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About CA Ankita Khetan 163 Articles
Ankita is a Chartered Accountant in practice and holds a Diploma in IFRS (from ACCA, UK). She is also a Commerce PG and Certified Independent Director (from IICA). She holds a certification in Forex and Treasury Management. Her area of expertise is GST and Income tax. She is passionate about reading, writing, and sharing knowledge on areas related to finance and taxation.

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