One more amendment has been made to restrict filing of GSTR-1 for a subsequent tax period unless taxpayer has either deposited the differential amount specified in intimation or has filed a reply explaining the reasons. GSTR-2B and GSTR-3B reconciliation has become a time-sensitive exercise with a limited window of 7 days without any provision for extensions to either make payment or reconcile the difference. The inaction would not only trigger demand proceedings by the department but also block the filing of GSTR-1 for the subsequent periods. However, it is unclear whether the filing of GSTR-1 would be blocked in those cases where no reply is filed or those cases where reply is filed but the same is not satisfactory to the officer. Notably, there is a mandate in law for the sequential filing of GSTR-1 and GSTR-3B. Therefore, upon this default of mismatch, GSTR-3B can also not be filed for subsequent periods unless this difference is sorted. In case, a default in filing GSTR-1 or GSTR-3B continues for one more tax period, filing of E-way bill will also be restricted. Effectively, no goods can be moved, and the entire business chain is halted.
Source: Barandbench
