Notification No.: 01/2021 – Central Tax
Date of Notification: 1st January 2021
Relevant Sections and Rules
Central GST Act, 2017:
- Section 164 – Power to make rules (rule-making power invoked)
- Section 37 – Furnishing details of outward supplies (referenced via GSTR-1/IFF block)
- Section 39 – Furnishing of returns (referenced via GSTR-3B dependency)
CGST Rules, 2017 (Amendment via this Notification):
- Rule 59 – New sub-rule (6) inserted (blocking of GSTR-1/IFF in specified cases)
- Rule 86B – Cross-reference used in Rule 59(6)(c) (99% ITC cap cases)
Forms impacted:
- FORM GSTR-1, FORM GSTR-3B, Invoice Furnishing Facility (IFF)
Integrated GST Act, 2017:
- Not directly applicable.
Summary of Notification
1) CGST (Amendment) Rules, 2021 notified & effective on publication:
The notification issues the Central Goods and Services Tax (Amendment) Rules, 2021 and brings them into force on the date of their publication in the Official Gazette.
2) Monthly filers—GSTR-1 blocked if preceding two months’ GSTR-3B not filed:
A registered person is not allowed to furnish details of outward supplies in FORM GSTR-1 under section 37 if the return in FORM GSTR-3B for the preceding two months has not been furnished.
3) QRMP taxpayers—GSTR-1/IFF blocked if preceding tax period’s GSTR-3B not filed:
A registered person filing quarterly under the proviso to section 39(1) cannot furnish GSTR-1 or use the Invoice Furnishing Facility (IFF) if GSTR-3B for the preceding tax period has not been furnished.
4) Rule 86B cases—additional block on GSTR-1/IFF:
Where a registered person is restricted by Rule 86B (i.e., constrained from using electronic credit ledger beyond 99% of tax liability), they are not allowed to furnish GSTR-1 or use IFF if GSTR-3B for the preceding tax period has not been furnished.
