Businesses that default on filing summary return and paying monthly GST will not be able to file GSTR-1 sales return of the succeeding month from January 1 next year.

The GST Council in its Lucknow meeting on September 17 has decided to take a host of measures to streamline compliance.

The Council decided to amend Rule 59(6) of the Central GST Rules with effect from January 1, 2022 to provide that a registered person shall not be allowed to furnish Form GSTR-1, if he has not furnished the return in Form GSTR-3B for the preceding month. At present, the law restricts filing of return for outward supplies or GSTR-1 in case a business fails to file GSTR-3B for the preceding two months.

While businesses file GSTR-1 of a particular month by the 11th day of the next month, GSTR-3B, through which businesses pay taxes, is filed in a staggered manner between the 20th and 24th day of the succeeding month.