GSTR 3B Fact Series 3/5: Restriction on filing GSTR-1 along with no ITC claim for your Customers
GST DOST's BLOG
Namaskar!
Welcome to the 3rd part of the GSTR 3B Fact Series.
After Referring to Rule 59(6) of CGST Rules 2017, you will get an idea that merely filing GSTR-1 is not enough for your Business.
As per the new rules, not filing GSTR 3B regularly will lead to a restriction in filing GSTR-1.
You will only be able to file GSTR-1 after you have successfully filed GSTR 3B for the prior pending months.
Not being able to file GSTR-1 on time means that your customers won't be able to claim Input Tax Credit in GSTR 2A.
Your customers not being able to claim ITC directly results in degrading Business relations along with a major dent to Future Business prospects because of the financial loss!
The following tabular representation will give you the Time duration after which the Govt. restricts filing of returns:
|
Return Filing Type |
Return Pending Time |
|
Monthly |
Preceding Two Months |
|
Quarterly |
Preceding Tax Period |
What should I do in such cases?
Businesses face various challenges because of which they are usually unable to file the returns on time.
- If you are facing liquidity problems and can’t file the return on time, we advise you to borrow money as loan and pay GST as you will be able to get a loan from various sources between 9% to 12%, however, the percentage of fine on late filing of GST from electronic cash ledger is 18%.
- If money is not an issue, but there is an issue regarding data validation, then take the expert GST Consultant service. Only filing returns is not enough in itself. It is also necessary to file the correct returns.
Ensure that you do not suppress the actual sales amount or avail more than the eligible amount of ITC under any circumstances!
Also, make sure that you have Business systems and operations set up with the power of automation using GST software.
If you do not have such a system in place and wish to streamline processes in your Business and operate Tension-Free,
Contact GST DOST, and we help you get a holistic view of how the Department sees your Business and prevent all kinds of issues that can happen in the future!!!
T: 90 8888 3000
Stay Safe and Stay Healthy.
Regards
Team GST DOST
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