"Invoice Furnishing Facility (IFF) allows small taxpayers to upload their invoices monthly . The Central Board of Indirect Taxes & Customs (CBIC) had notified the Invoice Furnishing Facility on 10.11.2020 via notification number 82 /2020-Central Tax."
🔰 what's the Invoice Furnishing Facility?
The Invoice Furnishing Facility (IFF) may be a facility where quarterly GSTR-1 filers can prefer to upload their Business-to-business (B2B) invoices monthly , currently under the QRMP scheme only. it's governed by Rule 59(2) of the CGST Rules, available to regular taxpayers having annual aggregate turnover of up to Rs.5 crore.
One should keep the subsequent points in mind before utilising the IFF:
- The IFF is an optional facility. Non-usage won't attract any late fee.
- The invoices concerning the last month of 1 / 4 are to be uploaded within the GSTR-1 return only.
- There is no requirement to upload invoices in GSTR-1 if an equivalent has been uploaded within the IFF.
- The total value of invoices which will be uploaded per month is restricted to Rs.50 lakh.
- The details submitted in IFF are going to be reflected within the GSTR-2A and GSTR-2B of the recipients.
- The Invoice Furnishing Facility will inherit effect from 01.01.2021 and therefore the first deadline was 13th February 2021 for January 2021 (being the primary month for the January-March 2021 quarter).
🔰 Who can use the Invoice Furnishing Facility?
Small taxpayers opting into the QRMP scheme filing their GSTR-1 returns quarterly can utilise the Invoice Furnishing Facility. If a taxpayer doesn't prefer to upload invoice details through the IFF, he/she has got to upload all the invoice details for the three months of the quarter within the GSTR-1 return.
🔰 what's the aim of the Invoice Furnishing Facility?
The taxpayers whose aggregate turnover is a smaller amount than Rs.5 crore within the preceding fiscal year can file their GSTR-1 and GSTR-3B quarterly by opting into the QRMP scheme. this is often allowed to scale back the compliance burden on small taxpayers. However, this creates problems for taxpayers who make purchases from QRMP taxpayers in claiming Input decrease (ITC).
Hence, the IFF has been introduced under the QRMP scheme to get rid of these hardships allowing the QRMP taxpayers to upload selective or all B2B invoices on the GST portal using IFF for the primary two months of the quarter. In turn, it helps the buyers in claiming ITC with none delay.
🔰 What details are to be submitted within the Invoice Furnishing Facility?
- "The following details are to be submitted by the tiny taxpayers if they choose Invoice Furnishing Facility:
- B2B invoice details of sale transactions (both inter-state and intra-state)- being corresponding tables 4A, 4B, 4C, 6B and 6C of GSTR-1.
- Debit and credit notes towards the B2B invoices issued during the month (CDNR)- being corresponding table 9B of GSTR-1.
- Respective amendments to the B2B invoices (B2BA) and/or the debit and credit notes (CDNRA)- being corresponding tables 9A and 9C of GSTR-1.
🔰 the way to use the Invoice Furnishing Facility?
As the Invoice Furnishing Facility is optional for the taxpayers under the QRMP scheme, the GST portal gave a timeline to opt-in or out of the scheme, i.e. it had been 31st January 2021 for the quarter January-March 2021. Once the tiny taxpayers stayed within the scheme, the GST portal has provided this facility for the primary two months of the quarter only. The B2B invoices should be uploaded in IFF from 1st to the 13th of the month after the relevant month (being only first two months of the quarter).
🔰 Advantages of using the Invoice Furnishing Facility
- Any late upload of B2B invoices, beyond 13th of next month (cut-off date for a month) will never attract late fee unlike GSTR-1. However, the registered buyers may at the foremost lose the input decrease for that month because it gets deferred to subsequent month.
- IFF is optional and versatile . If it had been chosen within the first month of a selected quarter, there's no rule that it must be chosen for the second month of an equivalent quarter.
- Buyers of products from small taxpayers can claim ITC monthly .
- The B2B sales details uploaded on IFF will get reflected or auto-populated into the relevant quarterly GSTR-1, thereby removing the necessity to re-enter the small print .
- It pushes for a monthly reconciliation of knowledge which will ultimately make quarterly return filing easier.
- Small taxpayers can improve their business by providing faster ITC claims.
- Suppose the QRMP taxpayer has only submitted the B2B data on IFF by 13th of next month but forgotten to end filing IFF for the month by 13th. He will still be allowed to file IFF after 13th, provided the info is already submitted on or before 13th of subsequent month. (Source)
