About IFF in GSTIIF in GST

The Goods and Services Tax Network (GSTN) made the new functionality of the Invoice Provisioning Facility (IPF) available on the Goods and Services Tax (GST) portal. The Invoice Furnishing Facility (IFF) is a facility where quarterly GSTR1 filers can choose to upload their invoices each month. A quarterly GSTR1 filer is a minor contributor with a turnover of up to Rs. 1.5 crore. Registrants opting for the scheme would be required to provide the details of an outgoing supply in FORM GSTR1 quarterly, following rule 59 of the CGST rule.

What should the Registrants do?

For each of the first and second months of a quarter, that registered person will have the optional Invoice Provisioning Facility (IFF) feature to provide details of these outgoing supplies to a registered person, if they deem it necessary, between the 1st of the month and the 13th of the following month. The above details of outgoing supplies, however, should not exceed the value of Rs. 50 lakh per month. The ability to provide invoice details in IFF has been provided in a manner that allows the details of such supplies to be duly declared in the FORM GSTR2A and FORM GSTR2B of the recipient concerned.

Advantages of IFF in GST

There are various advantages associated with the IFF, namely the purchaser of goods from small taxpayers can apply for the ITC every month; the structure allows monthly reconciliation of data and facilitates the compilation of declarations. Small taxpayers can scale their business by providing faster ITC claims and reducing the burden of compliance by reducing the volume of invoices to download at quarter-end. The IFF has a structure similar to the GSTR1 module and allows B2B invoices.

When to provide IFF in GST

The invoices to be provided can be archived using the IFF in the next month’s IFF or the quarterly GSTR1 form. For example, for the April-June quarter, B2B invoices for April (M1) can be filed in IFF by a taxpayer until May 13. Any IFF that is not archived by the expiration date of the 13th of the following month will expire.

Why it is a great initiative

Overall, this is an excellent initiative to help both small taxpayers and buyers. This structure will indirectly help small taxpayers to improve their business by providing faster ITC inquiries to their buyers. However, this will increase compliance costs for them. Therefore, a comparison must be made between the benefit of opting for the FRFI and the cost involved in it. It is good to go for this structure if a small taxpayer generates large volumes of B2B along with B2C invoices in a quarter. The end date for providing details of supplies of Goods or Services is February 13, 2021.

What are the prerequisites for submitting the IFF?

The requirements for the submission of the IFF are:

a. The taxpayer must be a registered taxpayer who has opted for quarterly requests in the QRP.

b. The taxpayer must have renounced the device and, at the same time, opted for quarterly archiving in the QRMP scheme.

c. The taxpayer must have filed the last applicable monthly/quarterly declaration before joining the QRMP device on the portal.

d. The taxpayer must have a valid username and password. And, the taxpayer must have copies of file both Form GSTR1 and Form GSTR3B every quarter.

Frequently Asked Questions

Is the submission of the IFF form different from that of the GSTR1 form or any other declaration?

No, filing the IFF form is similar to filing any other return/declaration.

Which archive options can I use to archive the GSTR1 / IFF module?

You can use the File with DSC or File with EVC options to archive the GSTR1 / IFF module. The assessed value must not exceed 50 Lakh.

I have submitted the IFF details. Will I still be able to delete the details using the RESET button?

No, sent IFF details cannot be deleted. However, the RESET button can delete only saved records and not submitted records or archived details.