Notably, ‘Invoice Furnishing Facility’ is made effective from 1st January 2021. The present article briefly explains the same.
Introduction of Invoice Furnishing Facility (IFF)
The amendment to rule 59 of the Central Goods and Services Tax Rules governs the ‘Invoice Furnishing Facility’. It means as under-
The Invoice Furnishing Facility is for the registered person filing Form GSTR-1 on a quarterly basis.
Such registered person can furnish details of outward supplies of goods or services, for the first two months of a respective quarter, using Invoice Furnishing Facility (i.e., IFF).
Such details should be furnished within a period of thirteen days of the succeeding month.
The registered person can furnish details up to the maximum cumulative value of INR 50 Lakhs in each month under IFF.
Notably, the registered person should not re-furnish the details already furnish under IFF while filing Form GSTR-1 for the respective quarter.
Steps to furnish details via IFF
By following the above steps, online and offline option for preparation of ‘Details of Outward Supplies of goods/ services’ via Invoice Furnishing Facility will be available.
Details to be provided under IFF
Below table briefly explains the tables available and details to be furnished under IFF-
Details to be furnished
4A, 4B, 4C, 6B and 6C – B2B Invoices
Details relating to B2B transactions i.e., goods/ services/ both supplied to a registered taxable person.
9B – Credit Notes/ Debit Notes (Registered)
Details covering credit notes and/ or debit notes issued to a registered taxable person.
9A – Amended B2B Invoices
Amendment in details relating to B2B supplies furnished in earlier period return.
9C – Amended Credit Notes/ Debit Notes (Registered)
Amendment in details relating to credit/ debit notes (issued to registered taxable person) furnished in earlier period return.
Furnishing of details via IFF is optional. The registered person has the following two options
Opting to file details via IFF
1. First month of the quarter - furnish B2B invoice details via IFF,
2. Second month of the quarter – furnish B2B invoice details via IFF, and
3. Third month of the quarter – furnish details of the third month and any pending details of first/ second month via Form GSTR-1.
Not opting to file details via IFF
Quarterly filing of Form GSTR-1
Suppose the registered person has opted for IFF and the tax period is quarter January 2021 to March 2021. Such registered person should keep following in mind-
Details of outward supplies (B2B) to be furnished via IFF within 13th February-2021
Details of outward supplies (B2B) to be furnished via IFF within 13th March-2021
Details of all the outward supplies to be furnished via Form GSTR-1 within 13th April-2021
Analyzing the advantages and disadvantages of opting for IFF
The biggest advantage of furnishing of B2B invoice details via IFF is that the buyer of the goods/ services can claim input tax credit every month.
Availability of faster input tax credit will eventually help the provider of goods/ services in increasing their business.
Some of the other notable advantages are-
In nut-shell, opting for IFF would be beneficial for the registered person having a large volume of B2B transactions.
Whereas, the compliance cost of the registered person having a large volume of B2C transactions can get more against the available benefits.
The registered person filing Form GSTR-1 on a quarterly basis.
File invoice details of B2B transactions for the first and second month via IFF.
File Form GSTR-1 at the end of the quarter covering details of the third month and pending details of the first and second month.
IFF not opted
File Form GSTR-1 on a quarterly basis.
13 days from the end of the respective month.
Opting for IFF is beneficial to a registered person having more B2B transactions.