GST Library
Subscription
GST News
GST Calendar
GST Case Laws
GST Notifications
GST Act / Rules
GST Rates
GST Set-off Calculator
GST Forms
Full Site Search
Classification by CTA
E-way Bill
Finance Bill

GST e-Books
GST Act & Rules
GST Rates Compendium
Classification by CTA

TaxReply India Pvt Ltd.
TM
Free GST updates via...
twitter
8130462634

Invoice Furnishing Facility (IFF) under GST - Complete Analysis

All about IFF (Invoice Furnishing Facility)

Invoice Furnishing Facility (IFF) is an optional facility that is made available to the small taxpayer who has opted to file the GST returns on a quarterly basis under the QRMP scheme.

The concept of IFF was firstly introduced vide notification no. 82/2020- Central Tax dated 10th November 2020. However, the same was made effective from 1st January 2021.

The current article simplifies the provisions governing IFF; explains the particulars to be filed in IFF; summarizes the steps to be followed for uploading the invoice details via IFF and analysis the advantages as well as disadvantages of IFF.

Provisions governing Invoice Furnishing Facility (IFF)

Rule 59(2) of the Central Goods and Services Tax Rules, 2017 governs the provisions of IFF. The simple understanding of provisions of rule 59(2) is explained hereunder-

  • The registered person opting to furnish a quarterly return can file the invoice details via IFF.
  • Details of B2B transactions (i.e. supply of goods or services to a registered person) can only be furnished through IFF.
  • Notably, the taxpayer can file the details through IFF only for the first and second month of the quarter. Additionally, the time period for using the IFF facility is from the 1st day of the next month till the 13th day of the next month.
  • Details of outward supplies (B2B transactions) can be furnished via IFF up to a maximum cumulative value of INR 50 Lakhs in each month.
  • Accordingly, the registered person opting to furnish details via IFF will have to follow the below filing procedure/ pattern-

Period

Details to be furnished

First month of the quarter

File B2B transactions details via IFF

Second month of the quarter

File B2B transactions details via IFF

Third month of the quarter

File details via Form GSTR-1. Here, the details of the third month and also pending details of the first and the second month of the quarter are to be submitted.

Further, rule 59(3) of the CGST Rules clearly states that details furnished via IFF should not be re-furnished while filing quarterly return in Form GSTR-1.

Particulars to be filed in IFF

As seen above, IFF allows the filing of only B2B transaction details. Accordingly, the tables and corresponding particulars/ details to be furnished via IFF is explained hereunder-

Tables covered under IFF

Corresponding details to be filed

4A, 4B, 4C, 6B and 6C– B2B Invoices

Details about B2B transactions i.e., goods or services or both supplied to a registered taxable person.

9B– Credit Notes/ Debit Notes (Registered)

Details regarding credit notes and/or debit notes issued to a registered person.

9A– Amended B2B Invoices

Amendment in details relating to B2B supplies filed in earlier period return.

9C– Amended Credit Notes/ Debit Notes (Registered)

Amendment in details relating to credit/debit notes (issued to registered person) filed in earlier period return.

Steps for uploading invoice details via IFF

In order to file invoice details via IFF on the GST portal, the taxpayer is required to follow the below steps-

STEP 1 – Go to GST website https://www.gst.gov.in/.

STEP 2 – Click ‘Login’ and enter appropriate ‘Username’, ‘Password’ and ‘Characters shown in the image’. Click LOGIN.

STEP 3 – Navigate the following path

            Services > Returns > Returns Dashboard.

STEP 4 – Select ‘Financial Year’ and ‘Return Filing Period’ from the drop-down list.

STEP 5 – Click ‘SEARCH’.

STEP 6 – Table mentioning ‘Details of outward supplies of goods/ services’ ‘Invoice Furnishing Facility’ will be displayed. Select either ‘PREPARE ONLINE’ or ‘PREPARE OFFLINE’.

STEP 7 – Furnish the invoice details online if ‘PREPARE ONLINE’ is selected or upload the JSON file using an offline tool if ‘PREPARE OFFLINE’ is selected.

STEP 8 – Tick the verification box and click ‘SUMBIT’.

STEP 9 – For final filing of details, click ‘FILE RETURN’.

STEP 10 – Select an authorized signatory from the drop-down list and submit the details using either EVC or DSC.

Advantages and disadvantages of IFF

IFF is an optional facility made available to the small taxpayer. Being optional in nature, it is important to undergo the advantages and disadvantages in order to decide whether to opt or not for IFF.

Advantages of IFF are-

  • Details furnished via IFF will be reflected in Form GSTR-2A and Form GSTR-2B of the buyer. Resultantly, the buyer of goods can avail Input Tax Credit on a monthly basis.
  • Availability of faster ITC will definitely support the small taxpayer to enhance their business.
  • Monthly reconciliation of data would be possible for the taxpayer.
  • It will also ease up the quarterly filing of Form GSTR-1 since the volume of invoices to be uploaded at the end of the quarter would be less.

Disadvantages of IFF are-

  • Monthly filing of invoice details will certainly increase the compliance cost of the taxpayer.
  • As only B2B transactions are covered in IFF, the taxpayer while filing Form GSTR-1 will have to conscientiously cover all the B2C transactions of the entire quarter.
  • The taxpayer is allowed to file maximum invoices up to a cumulative value of INR 50 Lakhs per month. The said restriction will act as a hurdle in the month in which the value of invoices is more than INR 50 Lakhs.

Based on the above analysis it can be concluded that opting for IFF would be more advantageous for taxpayer having a large volume of B2B transactions.

Summary

  • IFF is optional in nature.
  • IFF facility can be opted by the small taxpayer filing quarterly return under QRMP scheme.
  • Details of only B2B transactions are to be furnished in IFF.
  • Details can be furnished via IFF only for the first and second month of the quarter.
  • Details of the third month of the quarter and any pending details of the first and second month is to be submitted while filing quarterly return in Form GSTR-1.
  • Details under IFF is to be filed within a period of 13 days of the succeeding month.
  • The total value of invoices to be uploaded via IFF is restricted to INR 50 Lakhs per month.
  • The taxpayer can upload the invoice details under IFF by using the online or offline utility.
  • Details of invoices once filed via IFF should not be re-filed while filing the quarterly Form GSTR-1.
  • It is likely to benefit the taxpayer having more B2B transactions.

Subscribe to Complete GST Library

Subscribe to GST Library to unlock all features.
Author:

CA Poonam Gandhi


Jun 16, 2021


Post your comment here !


3967
 

Other Articles