Indirect Tax Laws and Practice · GST Returns

Furnishing Details of Outward and Inward Supplies in GST

Updated 11 October 2026 · Fact-checked

Outward supplies are reported by the supplier in FORM GSTR-1 (monthly or quarterly), or in the IFF for the first two months of a quarter. These details auto-populate the buyer's GSTR-2A and GSTR-2B. Tax is then paid and the summary return filed in GSTR-3B. Solve questions by identifying the filing mode, the form, the limits and the blocks.

Understand Furnishing Details of Outward and Inward Supplies

Under GST, every supply you make is reported by invoice. The supplier files FORM GSTR-1 with these details. The same data flows to the buyer's account, so the buyer's input tax credit depends on what the supplier has reported. The supplier's reporting is the starting point of the whole return chain.

Rule 59 sets out what goes into GSTR-1. You must give invoice-wise details of all inter-State and intra-State supplies to registered persons. You must also give invoice-wise details of inter-State supplies to unregistered persons where the invoice value is more than ₹1 lakh. Smaller supplies are reported in consolidated form. Intra-State supplies to unregistered persons are consolidated for each rate of tax. Inter-State supplies to unregistered persons up to ₹1 lakh are consolidated State-wise for each rate of tax. Debit and credit notes issued during the month for earlier invoices are also reported.

A person who files returns quarterly (the QRMP option under the proviso to section 39(1)) files GSTR-1 for the quarter. For the first and second months of the quarter, the person may use the Invoice Furnishing Facility (IFF). IFF is optional. It lets you report supplies to registered persons so that your buyers can see them early. Use it from the 1st day of the next month till the 13th day. The cumulative value cannot exceed ₹50 lakh in each of the months. IFF carries only invoice-wise details of supplies to registered persons, plus debit and credit notes for such invoices. Anything reported in IFF is not reported again in the quarterly GSTR-1.

The buyer sees the supplier's data in GSTR-2A and GSTR-2B. GSTR-2A is a dynamic view and changes as suppliers file or amend. GSTR-2B is a static statement for a month, fixed once generated, used for credit claims. Neither is a return you file. The rules supplied here do not cover them in detail, so treat them as the buyer's view of supplier data.

The registered person then files GSTR-3B, the summary return, and pays the tax. The tax shown in GSTR-3B should match the liability from GSTR-1. If GSTR-1 shows a higher liability than GSTR-3B, Rule 88C triggers an intimation in FORM GST DRC-01B.

Key rules to remember

GSTR-1 for regular filers: Every registered person required to furnish outward supply details under section 37 files FORM GSTR-1 for the month or the quarter; A person under section 14 of the IGST Act is excluded from Rule 59(1).
Invoice-wise vs consolidated reporting: Invoice-wise: all supplies to registered persons, and inter-State supplies to unregistered persons with invoice value > ₹1,00,000. Consolidated: other supplies to unregistered persons; Intra-State to unregistered: by rate of tax. Inter-State up to ₹1 lakh: State-wise by rate of tax.
IFF limits: Months 1 and 2 of a quarter; cumulative value ≤ ₹50,00,000 in each month; window from 1st to 13th of the next month; Only for persons furnishing quarterly returns. IFF covers supplies to registered persons only.
No double reporting: Details furnished through IFF are not furnished again in GSTR-1 for the quarter; Quarterly GSTR-1 covers the rest.
GSTR-1A: After GSTR-1 for a period but before GSTR-3B for that period, the person may amend or add details in FORM GSTR-1A; Optional. Amendments flow into the Rule 88C comparison.
GSTR-3B block on GSTR-1: GSTR-1 (or IFF) cannot be filed if GSTR-3B for the preceding month (or preceding tax period for quarterly filers) is not filed; Rule 59(6)(a) and (b).
Rule 88C difference: Tax per GSTR-1 (as amended in GSTR-1A, if any) or IFF > tax per GSTR-3B by the amount and percentage recommended by the Council → Part A of FORM GST DRC-01B; Response period is seven days: pay with interest under section 50 via FORM GST DRC-03, or explain.

How to solve Furnishing Details of Outward and Inward Supplies questions

Use this order for any question on reporting outward supplies, inward supply data or GSTR-3B.

1Identify the filer: monthly or quarterly (QRMP). This decides whether IFF is available.
2List each supply and classify it: to a registered or unregistered person, inter-State or intra-State.
3For unregistered recipients, test the ₹1 lakh invoice value limit on inter-State supplies to decide invoice-wise or consolidated reporting.
4Place each item in the correct form: GSTR-1 or IFF, and check IFF limits (₹50 lakh per month, due by the 13th, registered recipients only).
5Check blocks: has the earlier GSTR-3B been filed, and is any Rule 88C intimation pending?
6Compare GSTR-1 liability with GSTR-3B liability. If GSTR-1 is higher by the notified amount and percentage, apply Rule 88C.
7State the consequence: pay with interest through FORM GST DRC-03 or reply, within seven days, else recovery under section 79.

Quickest way: Four-question check

When to use it: For MCQs asking which form, limit or restriction applies.

Who is the recipient: registered or unregistered?
Is it inter-State, and is the invoice value above ₹1 lakh?
Is the filer quarterly, and is it month 1 or 2 of the quarter?
Is any earlier GSTR-3B or DRC-01B response pending? If yes, GSTR-1 or IFF is blocked.

Common mistakes in Furnishing Details of Outward and Inward Supplies

Treating the ₹1 lakh invoice value limit as applicable to all supplies
Students remember the number but not the conditions.
Fix: The limit applies only to inter-State supplies to unregistered persons. Supplies to registered persons are always invoice-wise.
Reporting supplies to unregistered persons in IFF
IFF is thought of as a mini GSTR-1.
Fix: IFF holds only invoice-wise supplies to registered persons and related debit and credit notes.
Reporting the same invoice in both IFF and quarterly GSTR-1
Students assume GSTR-1 must show the whole quarter.
Fix: Rule 59(3) bars repeating IFF details in GSTR-1.
Calling GSTR-2A and GSTR-2B returns that the buyer files
The names look like return forms.
Fix: They are auto-populated statements of supplier data. The buyer files GSTR-3B.
Missing that DRC-01B has a 7-day response and interest
Rule 88C is read only as a notice.
Fix: Remember the two options: pay with section 50 interest via DRC-03, or explain on the portal, within seven days. Unpaid amounts without acceptable reasons are recoverable under section 79.
Ignoring the block on filing GSTR-1 after an unanswered DRC-01B
The block sits in Rule 59(6)(d), not in Rule 88C.
Fix: Link both rules: GSTR-1 or IFF for a subsequent period is barred until you pay or reply.

Worked examples

Example 1

Sharma Traders, a quarterly filer under QRMP, made these supplies in July: (a) ₹40,00,000 of invoices to registered dealers; (b) an inter-State invoice of ₹1,80,000 to an unregistered buyer; (c) an inter-State invoice of ₹60,000 to an unregistered buyer. Which details can go into IFF, and how are the rest reported?

Show the solution

Sharma Traders is a quarterly filer and July is the first month of the quarter, so IFF is available.
IFF carries only invoice-wise supplies to registered persons. Item (a) qualifies.
Item (a) is ₹40,00,000, within the ₹50 lakh monthly cumulative limit, so it can go in IFF from 1 August to 13 August.
Items (b) and (c) are to unregistered persons, so IFF cannot carry them.
Item (b) exceeds ₹1 lakh and is inter-State, so it is reported invoice-wise in the quarterly GSTR-1.
Item (c) is up to ₹1 lakh and inter-State, so it is reported State-wise by rate of tax in the quarterly GSTR-1.
Item (a), if furnished in IFF, is not repeated in GSTR-1.

Answer: Only item (a) can go in IFF (optional, by 13 August). Item (b) is invoice-wise and item (c) is consolidated State-wise, both in the quarterly GSTR-1.

Example 2

For a month, a registered person's GSTR-1 shows tax payable of ₹8,50,000 and GSTR-3B shows ₹7,20,000. The difference exceeds the amount and percentage recommended by the Council. Explain the consequences under Rule 88C and Rule 59(6).

Show the solution

Difference = ₹8,50,000 − ₹7,20,000 = ₹1,30,000.
Because GSTR-1 tax exceeds GSTR-3B tax by more than the recommended amount and percentage, the person is intimated in Part A of FORM GST DRC-01B on the portal, with a copy by e-mail.
The person must act within seven days: pay the differential tax, fully or partially, with interest under section 50 through FORM GST DRC-03 and give details in Part B, or reply with reasons for the part left unpaid.
If the amount stays unpaid and no explanation is furnished, or the officer does not accept it, the amount is recoverable under section 79.
Under Rule 59(6)(d), the person cannot furnish GSTR-1 or IFF for a subsequent tax period until the amount is deposited or a reply explaining reasons for any unpaid amount is furnished.

Answer: The difference is ₹1,30,000. The person must pay it with interest under section 50 via DRC-03 or explain it within seven days. Failing that, recovery under section 79 follows, and GSTR-1 or IFF for later periods is blocked until the person pays or replies.

Exam tips

MCQs often test numbers: ₹1 lakh invoice limit, ₹50 lakh IFF limit, 13th date, and seven days under Rule 88C. Memorise them with their conditions.
In a case scenario, classify each supply by recipient and inter-State or intra-State before answering.
When a question mentions a mismatch of GSTR-1 and GSTR-3B, name Rule 88C and DRC-01B, and mention the 7-day response and interest.
Write the filing block in Rule 59(6) when the question asks why a person cannot file GSTR-1.
Do not quote rate or percentage thresholds for Rule 88C. The rule leaves them to the Council's recommendation.

Practice questions from GST Returns

Furnishing Details of Outward and Inward Supplies in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Furnishing Details of Outward and Inward Supplies: frequently asked questions

What is IFF in GST?

IFF is the Invoice Furnishing Facility. A quarterly return filer can use it to report supplies to registered persons in the first and second months of a quarter, up to ₹50 lakh cumulative in each month, from the 1st to the 13th of the next month. It is optional.

What is the difference between GSTR-2A and GSTR-2B?

Both show supplier-reported data to the buyer and neither is filed by the buyer. GSTR-2A is dynamic and updates as suppliers file or amend. GSTR-2B is a static monthly statement used to check credit availability.

Can I file GSTR-1 if my previous GSTR-3B is pending?

No. Rule 59(6) bars GSTR-1 or IFF filing if the GSTR-3B for the preceding month is not filed. Quarterly filers are barred if GSTR-3B for the preceding tax period is not filed.

What happens if I receive a DRC-01B notice?

You have seven days. You can pay the differential tax with interest under section 50 through DRC-03, or explain the difference on the portal. If you do neither acceptably, the amount is recoverable under section 79.