Advisory on sequential filing of GSTR-1

The Goods and Service Tax department has introduced an update on 21^st of October 2022 on “Advisory on sequential filing of GSTR-1”. Let us discuss and understand in detail about the update.

Sequential filing of GSTR-1 & filing of GSTR-1 before GSTR-3B on GST Portal

It is said that the Central Government has decided to make some changes in the law and therefore amended Section 37 & Section 39 of the Central Goods & Service Tax (CGST) Act 2017. And the amendments of the same is mentioned in Notification No. 18/2022-Central Tax dated 28^th September 2022 w.e.f. 1^st October 2022. The amendment is made under :-

1. Section 37(4) of the CGST Act which says that “a taxpayer shall not be allowed to file GSTR-1 if the previous GSTR-1 is not filed “and also under Section 39 (10).
2. As per Section 39(10), “a taxpayer shall not be allowed to file GSTR-3B if GSTR-1 for the same period is not filed.”

So, it can be concluded that:-

Section 37(4): A registered person shall not be allowed to furnish the details of outward supplies under sub-section (1) for a tax period if the details of outward supplies for any of the previous tax periods has not been furnished.

Section 39(10): A registered person shall not be allowed to furnish a return for a tax period if the return for any of the previous tax periods or the details of outward supplies under sub-section (1) of section 37 for the said tax period has not been furnished.

It is decided that these amendments shall come into effect and will be operational on GST Portal from 1^st November 2022. Also, from October 2022 tax period onwards, the filing of the previous period GSTR-1 will be mandatory before filing the current period GSTR-1.

In addition to it, from October 2022 tax onwards, filing of GSTR-1 will also be mandatory before filing GSTR-3B.

NOTE:- Taxpayer shall not be allowed to file GSTR-3B for October 2022 period if GSTR-1 of October 2022 is not filed.

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That was the latest update direct from the Goods and Service Tax Portal for the knowledge of our valuable readers. Stay tuned to know about all the latest GST news and updates. We, attempt our best to give all the valuable information to all the readers.