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written by Khatabook | November 15, 2021

Key Aspects of Invoice Furnishing Facility (IFF)

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The IFF full form in GST is Invoice Furnishing Facility. It is a means where people submitting quarterly GSTR-1 can select to transfer their Business-to-business (B2B) bills monthly, at present only under the Quarterly Return Filing and Monthly Payment of Taxes (QRMP) system. It is administered by Rule 59(2) of the Central Goods and Services Tax (CGST) Rules, accessible to general taxpayers having a yearly total sales of up to Rs 5 crore. Now, let's learn about the IFF scheme GST in detail.

Important information regarding GST IFF

You should remember the following details before using the IFF in GST

  1. The IFF facility in GST will commence from 01.01.2021, and the first cut-off date was 13 February 2021 for January 2021 (the initial month for the January-March 2021 quarter).
  2. The particulars submitted in IFF will be displayed in the GSTR-2B and GSTR-2A of the beneficiaries.
  3. The absolute amount of invoices that can be uploaded monthly is limited  to Rs 50 lakh.
  4. There is no obligation to register the invoice bills in GSTR-1 if the corresponding has been registered in the IFF.
  5. The invoices associated with the last month of a quarter are to be provided in the GSTR-1 return particularly.
  6. The IFF in GST is a voluntary facility. Non-usage will not invite any delayed fees.

Small taxpayers choosing into the QRMP scheme registering their GSTR-1 returns every quarter can utilise the Invoice Furnishing Facility. It is essential to see that if a taxpayer does not choose to register invoice specifications through the IFF, they have to present all the invoice specifications for the three conse  cutive months of the quarter in the GSTR-1 return.

Key factors regarding IFF in GST Portal

  1. The IFF scheme GST  allowed the assessee an option instead of forcing underneath QRMP strategy to move on Input Tax Credit (ITC) for beneficiaries for M1 and M2 months in a quarter. However, it is essential to record the Form GSTR1 for the M3 month of the quarter: 
  • In IFF, the details saved can be distinguished or refreshed by utilizing the RESET button. Furthermore, it will not be erased whenever it is submitted or given.
  • For a comparative quarter, the records outfitted in GST IFF are asked to be filled again in Form GSTR-1.
  • In IFF,  the provider can transfer the data using a JavaScript Object Notation (JSON) document, which is made using the Returns disconnected instrument.
  • Records uploaded in IFF by the supplier will display in Form GSTR-2A/2B of the beneficiaries.
  1. For furnishing the IFF GST form- M1 and M2 of the month, you need to sign in to the GST portal and navigate to Returns > Services > Returns Dashboard > File Returns. Then choose the Financial Year & Return Filing Period (M1/M2 of a quarter) and Tap on the SEARCH button to file the IFF forms for M1 or M2 month.
  2. The last date to which the option to upload the information in IFF can be claimed on 13th of next month in every quarter. 
  3. IFF in GST will also be utilised in filing the leftover invoices for the particular month IFF or in the quarterly Form GSTR-1. For instance, for the Apr-June quarter, in IFF GST, the B2B invoices for April (M1) can be furnished through the assessee till 13th May. IFF, which is not delivered till the last date of the 13th of the consequent month, will be terminated.
  4. The facility of IFF 1 is similar to Form GSTR-1, and it also helps to register the details  of B2B invoice bills in the following places:

4A, 4B, 4C, 6B, 6C

B2B Invoices

9B

Credit / Debit Notes (Registered) – CDNR

9A

Amended B2B Invoice – B2BA

9C

Amended Credit/ Debit Notes (Registered) – CDNRA

  1. The assessee who has opt ed for quarterly recording recurrence under the plan can provide their data of outward supplies that are business-to-business invoice bills concerning the first two months of the quarter. In simple terms, the assessee can document M1 and M2 separately of a Quarter in IFF through the IFF. For example, towards the Apr-June quarter, B2B invoices bill just for the long periods of April (M1) and May (M2). 
  2. According to the sub-rule, the Invoice Furnishing facility (IFF) is to be given to the assessee under QRMP strategy, which incorporates Quarterly filers of Form GSTR-1 and Forms GSTR-3B returns (2) of Rule-59 of the CGST Rules, 2017. 

How to utilise IFF in GST?

The GST IFF Invoice Furnishing Facility is voluntary for the taxpayers under the QRMP scheme. The GST entryway gave a course of events to select in or out of the plan; for example, it was 31st January 2021 for January-March 2021. 

When the taxpayers remained in the plan, the GST entryway allowed this office for the underlying two months of the quarter especially. The B2B invoice bill should be transferred in IFF from the first to the 13th of the month following the important month (the underlying two months of the quarter). The QRMP for businesses can follow the manual for filing IFF in the GST gateway.

Also Read: Impact of GST on the Cement Industry

Steps for filing IFF in GST

The enrolled person choosing to register details through IFF will have to obey the following steps on the GST portal:

  1. Log in to the web portal- https://www.gst.gov.in/
  2. After login, fill in the relevant details carefully-
  1. Password; and
  2. Characters shown
  3. Username.
  1. Click on ‘Services and on the drop-down menu choose Returns and Returns Dashboard, individually.

  1. Select suitable ‘Financial Year’ and ‘Period’ and click on ‘Search’.

  1. Table comprising ‘Data of the outward supplies of goods or services – IFF – Optional’ will come up.
  2. Select ‘Prepare Online’ for registering IFF by online mode. 

  1. Alternatively, you can select ‘Prepare Offline’ for registering IFF by offline mode.

  1. Submit specifications, as applicable.
  2. Submit IFF by using Digital Signature Certificates (DSC) or by Electronic Verification Code (EVC).

Provisions ruling the IFF in GST

The new rule 59 under CGST, valid from 1st January 2021, incorporates provisions relating to Invoice Furnishing Facility. 

Here are some important points to keep in mind about IFF in GST -

  • The convenience is open to the listed person listing quarterly GSTR-1 returns.
  • Specifications once submitted through the Invoice Furnishing Facility (IFF) should not be re-submitted while listing Form GSTR-1.
  • Information up to a total of INR 50 Lakhs per month can be registered under IFF in GST.
  • The IFF in GST is voluntary. The certified person has the choice either to opt for IFF or not.
  • Following GST IFF, the information must be presented within 13 days from the completion of the particular month.
  • The enrolled person opting for Invoice Furnishing Facility will have to register the particulars of outward supplies subsequently-

Period

Particulars

Form for filing the details

The first month of the quarter

B2B transactions

Invoice Furnishing Facility

The second month of the quarter

B2B transactions

Invoice Furnishing Facility

Quarter

All the transactions of the third month and pending transactions of the first and second month

Form GSTR-1

Purpose of the IFF in GST

Businesses whose total sales are under Rs 5 crore in the preceding year can present their GSTR-3B and GSTR-1 each quarter by selecting the QRMP ability. This is permitted so as to reduce the compliance burden on businesses. However, this creates problems for businesses that purchase from QRMP taxpayers in claiming Input Tax Credit (ITC). 

For instance, when a purchaser buys merchandise using QRMP during a quarter, the purchaser may need to delay until the finish of the quarter to secure ITC. The justification behind the small taxpayers can transfer the invoice bills and complete the GSTR-1 filing on their own after the quarter is finished. This cycle would create a setback for determining ITC as the purchaser can secure full ITC just when the receipt shows up in their GSTR-2B.

Consequently, the IFF in GST has been introduced under the QRMP for eliminating these hardships allowing uploading selective or all B2B invoice bills on the GST entry utilizing IFF for the initial two months of the quarter. Thus, it helps the purchasers in securing ITC immediately.

Details to be provided in the IFF GST

The following details are to be presented by the small taxpayers if they choose for IFF GST:

Various amendments to the B2B invoice bills (B2BA) and the debit and credit entries (CDNRA).

Indicate tables 9C and 9A of GSTR-1

Credit and Debit entries towards the B2B invoice bills published throughout the month (CDNR)–

Indicates table 9B of GSTR-1.

B2B invoice bills items of sale activities(both inter-state and intra-state 

Indicates tables 4A, 4B, 4C, 6C and 6B of GSTR-1.

It is important to remember that the taxpayer should present all B2C invoice bills of the quarter while registering quarterly GSTR-1.

Also Read: A Guide to Filing GST Annual Returns (GSTR-9)

Advantages of adopting the IFF Facility GST

  1. IFF scheme GST facilitates the consistency trouble by diminishing the number of invoices to be transferred toward the culmination of the quarter. 
  2. IFF in GST pushes for the monthly settlement of data, ultimately making quarterly return documenting simpler. 
  3. Taxpayers can manage their business by providing quicker ITC claims. 
  4. The B2B sales information uploaded on IFF GST will get displayed within the relevant quarterly GSTR-1, in this way eliminating the need to give the details again.  
  5. Invoice Furnishing Facility is discretionary and adaptable. In case it was picked in the primary month of a particular quarter, there is no standard that it should be picked for the second month of a similar quarter. 
  6. Any late transfer of B2B invoice bills past the thirteenth of the coming month (remove date for a month) won't ever draw in a late charge, not at all like GSTR-1. In any case, the enlisted purchasers may lose the information tax break for that month as it gets provided to the subsequent month.

Conclusion

IFF in GST is a great move to support both taxpayers and clients in uploading their invoices online for easy payments. This tool will indirectly benefit taxpayers to improve their business by implementing quicker ITC claims to their clients. But, this may enhance the agreement costs for them. After the invoice bills are registered and listed on IFF, it gets auto-populated within the GSTR-1, presenting it as non-editable or can not be deleted. 

The data must be separated as non-B2B and B2B transactions for listing on the IFF. Therefore, one has to judge between the advantage of choosing for IFF and the cost associated. It is competent to opt-in if the QRMP taxpayer increases relatively larger amounts of B2B invoice bills than B2C invoice bills in a quarter. Moreover, the influence on business relationships with their registered clients must be explained well. Therefore, we hope this article has cleared your questions regarding IFF facility GST

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FAQs

Q: Which call options can I use to file GSTR-1/IFF?

Ans:

You can use File with Digital Signature Certificates (DSC)or File with Electronic Verification Code (EVC) options to file the GSTR-1/IFF form.

Q: Where can I view filed IFF forms?

Ans:

We can view them in 'View File Returns', and 'Track return Status'.

Q: Is it compulsory for Taxpayers to opt for IFF GST every month Quarterly?

Ans:

No, It's not compulsory. Taxpayers can opt-out filing in IFF GST the very next month.

Q: Is there any late fees applicable on the late filing of invoices under IFF GST?

Ans:

No, there is no late fee for the late filing of invoices under IFF GST.

Q: Is it compulsory for taxpayers to file their invoices in IFF?

Ans:

No, It's a discretionary facility provided to taxpayers.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.