Stricter compliance for GSTR 3B not filed: Recent GST Update

The government has been making a lot of changes lately to ensure taxpayers stay compliant and there is transparency throughout the system. In advisory 515 released by the government recently, it is stated that Rule-59(6) needs to be implemented which is about GSTR 3B not filed /non-filing and stricter guidelines.

Clause (a) of the sub-rule (6) of Rule 59 of CGST Rules, 2017

As per Notification No. 35/2021 – Central Tax dated 24th September 2021, clause (a) of the sub-rule (6) of Rule 59 of CGST Rules, 2017 was amended. By way of this amendment, for the words “for preceding two months”, the words “for the preceding month” were substituted with effect from 1st January 2022.

What are the consequences if GSTR 3B is not filed?

From 1st January 2022 onwards, if a monthly filer is non-compliant i.e. he has his GSTR-3B not filed for the previous month, then such taxpayer will not be allowed to file the GSTR-1 for the subsequent month, till the GSTR-3B for the preceding month is filed. Similarly, for taxpayers who have opted for the QRMP Scheme, and fails for file GSTR 3B quarterly, then he will not be allowed to file for IFF.

For Example:

Mr. A has his monthly GSTR-3B not filed for November 2021. Now, Mr. A tries to file his GSTR-1 for December 2021 on 10th January 2022. He will not be able to do so because the system will not allow the filing of GSTR-1 for December 2021. Mr. A will be able to file GSTR-1 for December 2021 only after the filing of GSTR-3B for November 2021.

What is the solution?

The government has requested taxpayers to file GSTR-1 and GSTR-3B on time in order to follow Rule 59 of CGST Rules, 2017 and avoid any inconvenience in this regard. If taxpayers fail to file GSTR 3B timely, then GSTR 1 will be blocked.

Read: FAQs around mistakes in GSTR 3B & GSTR 1 and how to resolve them

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