An Invoice Furnishing Facility (IFF) has been introduced for the taxpayers who have opted for the QRMP scheme. In other words, we can say that this facility is for the taxpayers who are now eligible to file their GST returns quarterly (both GSTR-1 & GSTR-3B).
Note: IFF is completely optional as of now for eligible taxpayers.
The report filed through IFF is similar or equal to GSTR-1. The only difference is that the GSTR-1 has been named as IFF (for every first 2 months of individual quarters). As we know, under the QRMP scheme taxpayers will file their returns quarterly in the 3rd month of the quarter, and therefore the dealers who are purchasing goods from those taxpayers who have opted for the QRMP scheme, will not be able to avail ITC monthly. This is because ITC can be claimed only if it is shown in GSTR 2B.
The concept and purpose of converting GSTR-1 to IFF for the first two months of the quarter (known as M1 & M2 for each quarter) are to ensure that the details of ITC are reflected in the dealers GSTR-2B on a monthly basis. Because of this, these dealers can avail the ITC monthly. This is entirely optional, If you do not file IFF for M1 (first month of each quarter) & M2 (second month of each quarter), then there is no penalty or fine, and you can altogether skip filing of IFF. You can file all your invoices at once in the third month of the quarter through GSTR -1.
Under the QRMP scheme, the commonly used terms are explained below for better understanding:
- M1 – First month of every quarter is known as M1
- M2 – Second month of every quarter is known as M2
- IFF – GSTR-1 is named as IFF for the first two months of every quarter. For example: In quarter 1, for April & May, the report filed will be known as IFF, and the statement filed in June will be known as GSTR-1.
- GSTR -1 – Statement filled in 3rd month of every q
- GSTR-1 (in the 3rd month of every quarter) has to be mandatorily
- The invoices that you have already filed in IFF need not be filed again in GSTR-1. That means GSTR-1 should only contain the invoices that were never uploaded on the portal by you. If you are filling IFF for both the months then in the GSTR-1 for the 3rd month, you will file the invoices of 3rd month and the unfiled invoices of the first 2 months. One invoice should not be filed twice (both in IFF and GSTR-1).
The procedure of filing of IFF is similar to GSTR-1. The only difference will be that you will be allowed to fill only 4 fields, namely:
- B2B INVOICES (4A,4B,4C,6B,6C)
- CREDIT/DEBIT NOTES REGISTERED (9B)
- AMENDED B2B INVOICES (9A)
- AMENDED CREDIT DEBIT NOTES REGISTERED (9C)
Rest of the procedure is the same as the filing of GSTR-1.
Now, the important point you should note is that: taxpayers who are doing B2C business will not have the facility to file IFF because B2C (Business to Consumers) transactions are sales to unregistered persons. They do not want to claim ITC. Therefore taxpayers who are making B2B sales alone have the option to file IFF. However, GSTR -1 is to be filed for both B2B and B2C transactions.
- Only B2B sales details are reflected in GSTR-2B and are eligible for claiming of ITC.
- The option to upload the details in IFF can be availed till 13th of the subsequent month.
To file the IFF for M1 & M2:
- Login to GST portal
- Go to ‘Returns dashboard’
- File Returns
- Select year and Month for filing the return
- Click on Search
- A page will be opened (same as it used to open earlier) and in the place of GSTR-1, it will be shown as IFF (optional). The preview is displayed below:
- IFF can also be filed offline using JSON from your softwar
- To edit or delete any Invoice uploaded/saved in IFF, you can use the ‘RESET BUTTON’. Once the IFF is submitted or filed, you cannot make any changes to it nor edit/delete any Invoice.
- In case you wish to edit any invoice then it can be only done in the subsequent month’s IFF in the Amendment section.
Guest Post By:
Name: Sonia Agarwal