Non-filers of monthly GST return to be barred from filing GSTR-1 from Jan 2022
Businesses that default to bulk refunds and pay monthly GST will not be able to submit GSTR1 sales returns for the following month from January 1 of the following year.
The GST, at its meeting in Lucknow on September 17, decided to take a number of measures to optimize compliance, including mandatory Aadhaar authentication for businesses to file reimbursement claims.
These measures will help to prevent revenue leakage due to the Value Added Tax (GST) evasion, which was introduced on July 1, 2017.
The Council decided to amend Art. 59 sec. The 6 GST Central Rules effective January 1. 2022 to indicate that the registrant cannot submit a GSTR1 form unless he has submitted a Form GSTR-3B report for the previous month.
The law currently restricts the submission of an outbound or GSTR1 declaration in the event that a company has not submitted a GSTR3B in the past two months.
While companies submit the GSTR1 for a specific month before the 11th of the following month, the GSTR3B through which companies pay their taxes is filed staggered between the 20th to the 24th of the following month.
The Board has also made the Aadhaar GST registration authentication compulsory to qualify for refund and cancellation claims.
The Central Council for Indirect Taxes and Customs (CBIC) notified Aadhaar of the authentication for GST registration as of August 21, 2020
The notice also states that in the event that companies do not provide Aadhaar numbers, GST registration will only be provided after physical verification of the place of business.
The council has now decided that companies will now need to combine their GST registration with the biometric Aadhaar in order to claim a tax refund as well as request a cancellation of the deregistration.
At its 45th meeting, the Council, which includes the ministers of the Republic of Poland and the Treasury, also decided that the GST tax refund would be paid to the bank account associated with the same PAN number under which GST registration was obtained.