The facility of filing of NIL GSTR-3B monthly return through short messaging service (SMS) was started from 08.06.2020. Subsequently vide press release dated 27.06.2020 it was intimated that the facility of filing of NIL GSTR-1 (statement of outward supplies), through SMS will also be rolled out from 1st week of July,2020. Further as proposed the facility of filing of GSTR-1 through SMS has been made operational on common portal from 01.07.2020.
This is touted as a significant move towards taxpayer facilitation and step that will substantially improve ease of GST compliance for over 22 lakh registered taxpayers who had to otherwise log into their account on the common portal and then file their returns every month. Now, these taxpayers with NIL liability / outward supplies need not log on to the GST Portal and may file their NIL returns through a SMS from their mobile phones.
It is pertinent to mention here that Rule 61 of the CGST Rules, 2017 which governs form and manner of submission of monthly return does not envisage filing of GSTR-1 or GSTR-3B through SMS.
The legal backing of filing of GSTR-3B through SMS comes from Rule 67A which was inserted to the CGST Rules, 2017 vide CGST (Fifth Amendment) Rules, 2020 by means of Notification No. 38/2020–Central Tax dated 05.05.2020. Further as filing of GSTR-3B was operationalised from 08.06.2020, Rule 67A has also been made operative vide Notification No. 44/2020 – Central Tax dated 08.06.2020 with effect from 08.06.2020. .
However as Rule 67A of the CGST Rules , 2017 only provided for filing of GSTR-3B through SMS , the Rule has been substituted vide Notification No. 58/2020-Central Tax dated 01.07.2020 for covering GSTR-1 filing through SMS, within its ambit.
For ready reference of our readers the Rule 67A before and after substitution is tabulated below:
Original Rule 67A (effective from 08.06.2020 to 30.06.2020) | Rule 67A after substitution vide Notification No. 58/2020-Central Tax (effective from 01.07.2020) |
“67A. manner of furnishing of return by short messaging service facility. Notwithstanding anything contained in this Chapter, for a registered person who is required to furnish a Nil return under section 39 in FORM GSTR-3B for a tax period, any reference to electronic furnishing shall include furnishing of the said return through a short messaging service using the registered mobile number and the said return shall be verified by a registered mobile number based One Time Password facility. Explanation.- For the purpose of this rule, a Nil return shall mean a return under section 39 for a tax period that has nil or no entry in all the Tables in FORM GSTR-3B.“.
| “67A. Manner of furnishing of return or details of outward supplies by short messaging service facility.- Notwithstanding anything contained in this Chapter, for a registered person who is required to furnish a Nil return under section 39 in FORM GSTR-3B or a Nil details of outward supplies under section 37 in FORM GSTR-1 for a tax period, any reference to electronic furnishing shall include furnishing of the said return or the details of outward supplies through a short messaging service using the registered mobile number and the said return or the details of outward supplies shall be verified by a registered mobile number based One Time Password facility. Explanation. – For the purpose of this rule, a Nil return or Nil details of outward supplies shall mean a return under section 39 or details of outward supplies under section 37, for a tax period that has nil or no entry in all the Tables in FORM GSTR-3B or FORM GSTR-1, as the case may be.”. |
From above it is evident that by substitution of Rule 67A of the CGST Rules, 2017 legal backing has been provided for filing of GSTR-1 through SMS.
It is pertinent to note here that the above substitution of Rule 67A has been made effective from 01.07.2020, in view of fact that facility of filing GSTR-1 through SMS has also been started on the common portal from 01.07.2020.
It should be remembered that as per Explanation to Rule 67A a Nil return shall mean a return for a tax period that has nil or no entry in all the Tables in FORM GSTR-3B/ GSTR-1. Thus there should no outward supplies viz taxable supply, exempt supply (including Nil rated and non GST supply) and exports, for filing GSTR-1 through SMS. Further apart from NIL outward supplies there should be no liability under reverse charge and no ITC availing / reversal etc in order to file GSTR-3B through SMS for that month.
Before parting, it is worth mentioning that extension of benefit of filing of GST return by SMS to GSTR-1 is a welcome step and will definitely reduce compliance burden of assessees. As the persons having NIL ouward supplies / inward supplies subject to RCM and ITC, will be able file both the main returns viz GSTR-1 and GSTR-3B through SMS.
However there could be a situation that a registered person is eligible to file its GSTR-1 through SMS as its outward supplies are NIL but due to RCM liability / ITC availing / reversal , he may have to file GSTR-3B through common portal.
For ready reference the Notification No. 58/2020-Central Tax dated 01.07.2020. is given below:-
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
