CGST (1st Amendment) Rules 2021 notified by CBIC

CBIC notifies the CGST (1st Amendment) Rules 2021 to insert new CGST Rule 59(6), to disallow filing of GSTR 1 if the taxpayer has not filed GSTR 3B for the preceding two months.

New CGST Rule 59(6) provides for disallowing filing of monthly return in Form GSTR 1 where the registered taxpayer has failed to furnish the return in Form GSTR 3B for the preceding two months.

Further, new CGST Rule 59(6) provides for disallowing filing of quarterly return in Form GSTR 1 (or using Invoice Furnishing Facility) where the registered taxpayer has failed to furnish the quarterly GSTR 3B for the preceding tax period. Also, new CGST Rule 59(6) provides for similar treatment for taxpayers who are required to pay at least 1% tax in cash under CGST Rule 86B, if GSTR 3B is not filed for the preceding tax period.

CBIC Central Tax Notification 01/2021 dt. 01/01/2021: CGST (1st Amendment) Rules 2021

G.S.R. ..(E).- In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-

1. Short title and commencement.-

(1) These rules may be called the Central Goods and Services Tax (Amendment) Rules, 2021.

(2) These rules shall come into force on the date of their publication in the Official Gazette.

2. In the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), in rule 59, after sub-rule (5), the following sub-rule shall be inserted namely:-

(6) Notwithstanding anything contained in this rule,-

(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 preceding two months;

(b) a registered person, required to furnish 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 3B for preceding tax period;

(c) a registered person, who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of ninety-nine per cent. of such tax liability under rule 86B, 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 3B for preceding tax period.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide notification No. 3/2017 Central Tax, dated the 19th June, 2017, published vide number G.S.R. 610 (E), dated the 19th June, 2017 and last amended vide notification No. 94/2020 Central Tax, dated the 22nd December, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 786(E), dated the 22nd December, 2020.