Implementation of the Rule-59(6) on GST Portal

Implementation of the Rule-59(6) on GST Portal 26/08/2021 1. Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2

Implementation of the Rule-59(6) on GST Portal

26/08/2021

1. 1. Rule-59(6) of CGST Rules, 2017; inserted vide Notification No. 1/2021 dated 1st January 2021, provides for restriction in the filing of GSTR-1 in certain cases :
1. a) 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 the preceding two months;
2. b) a registered person, required to furnish a 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;
2. 2. This Rule will be implemented on GST Portal from 1st September 2021. On implementation of the said Rule, the system will check whether before the filing of GSTR-1/IFF of a tax period, the following has been filed or not:
1. a) GSTR-3B for the previous two monthly tax periods (for monthly filers),
   OR
2. b) GSTR-3B for the previous quarterly tax period (for quarterly filers), as the case may be. The system will restrict the filing of GSTR-1/IFF till Rule-59(6) is complied with.
3. 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 that 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. 4. Implementation of Rule-59(6) on the GST Portal will be completely automated, similar to the blocking & unblocking of e-way bills as per Rule-138E and the 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. 5. To ensure no disruption in filing GSTR-1/IFF, taxpayers who have not filed their pending GSTR-3B, especially from the period November 2020 and afterwards may do so at the earliest.

Thanking you,
Team GSTN