What is the Amendment Circulated via Govt in Filing GSTR-1 & 3B from 1st Jan 2022?
Earlier taxpayers (Supplier) were unable to furnish GSTR-1 or practice the IFF on the GST portal if they had due GSTR-3B filings for the past two months (monthly filer) or for the last quarter (quarterly filer) as per CGST Rule 59(6). GSTR-1 would not be furnished by the assessee from 1st January 2022 if the former months GSTR-3B return is not being furnished. For instance when the supplier losses to furnish GSTR-1 for the month of Jan 2022, then he would not be permitted to furnish GSTR-3B for the month of Feb 2022.
What Would be the Outcome of Non-filing, Late Filing, or Improper GSTR 1 Filing
The outcome of non-filing, late filing, or improper filing of GSTR-1 are mentioned below:
Case 1: if the GSTR-1 does not being filed by the supplier on or before the 11th of the mentioned month then the goods or services recipient would not able to claim the ITC in GSTR-3B for the particular month because form GSTR-1 does not being furnished and the ITC of that does not being shown in recipients GSTR-2B.
For instance, If the supplier loses to furnish GSTR-1 for the month of Jan 2022, the recipient will not get be permitted to avail input tax credit for that month in GSTR-3B of Jan 2022.
Case 2: if the supplier furnishes GSTR-1 post 11th of the mentioned month the recipient of the goods or services would not avail ITC of that for the same month however would avail in GSTR-3B.
For instance, if the supplier furnishes GSTR-1 towards the month of Jan 2022 post 11th of the mentioned month then the recipient would be permitted to avail ITC for that in GSTR-3B for that month of Feb 2022.
Case 3: When the supplier furnishes GSTR-1 on or prior to the 11th of the mentioned month however the GST number is wrong or writes B2B supplies as B2C then the recipient of the goods or services would avail input tax credit for that in GSTR-3B for the same month.
For instance, if the supplier furnishes GSTR-1 towards the month of Jan 2022 wrongly and if the change to that is being performed in GSTR-1 of March 2022 the recipient would be permitted to avail the input tax credit for that inside GSTR-3B for March 2022.
Hence from 1st Jan 2022, it is essential for the supplier to furnish GSTR-1 correctly and with time.
What Would be the Outcome If the Supplier Renders a Self-assessed Tax that is Outward Tax Liability in Form GSTR-1?
The latest explanation, section 75(12) has been inserted as per the effect of output tax concerned with the invoice but excluded from the GSTR-3B included in the self-assessed tax.
What Protection Must Opt by the Recipient with Respect to the Mentioned Problems?
Recipients of goods or services must find out the defaulting supplier for that. The recipient would indeed find out that if his supplier has furnished GSTR-1 or not through the search assessee option upon the GST portal. If the supplier does not furnish GSTR-1 in time and with correctness needed in it then it would negatively affect the business relations and the recipient can indeed recover interest from the supplier as the recipient would not avail the input tax credit for that.
