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CA Intermediate · Taxation · Returns

Anand & Sons, Jaipur, is a regular taxpayer who has not filed GSTR-3B for several consecutive tax periods. Which of the following is a correct consequence under the CGST Act regarding the restriction on filing of other returns?

A registered person who has not filed GSTR-3B for the preceding tax period is barred from furnishing outward supply details in GSTR-1 for the later period. The default therefore blocks the outward supply return, while the registration remains regular and is not converted to composition.

  1. AGSTR-1 can be filed freely, as it is unrelated to GSTR-3B
  2. BThe person cannot furnish the details of outward supplies in GSTR-1 for a tax period if the return for the preceding tax period in GSTR-3B has not been furnishedCorrect
  3. COnly the e-way bill generation is blocked, GSTR-1 remains unaffected
  4. DThe registration is automatically converted to composition

Explanation

Under the CGST law, a registered person cannot furnish details of outward supplies in GSTR-1 for a tax period if the GSTR-3B for the preceding tax period has not been filed (with the rule-based restriction applying). So the default blocks further GSTR-1 filing. Registration does not automatically convert to composition.

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