Introduction

We all are aware of the fact that QRMP has been introduced in GST law which provides for quarterly return monthly payment to small businessman.

In this scheme tax is paid monthly but the facility is given to file return on quarterly basis.

But this resulted in a problem for recipients who wanted to avail benefit of ITC on monthly basis. So, there is a need arised of IFF i.e. invoice furnishing facility. This facility came into picture from January 2021.

Let us discuss what it is-

What is IFF?

As it is defined in GST law that a person who is recipient of goods or services can avail benefit of ITC only when supplier has uploaded return on portal means he has filed GSTR 1 but registered person who has availed QRMP scheme cannot upload invoices on monthly basis as he files return quarterly.

To overcome this delay in availing ITC, government of India has introduced IFF so that supplier can upload invoices monthly, with the use of this facility irrespective of the fact that return is being filed quarterly.

Simply we can say that IFF is a facility provided to quarterly taxpayers who are in QRMP scheme to file their details of outward supplies in the first two months of quarter, to pass on the credit to recipient.

Example- A registered person who is a supplier of goods wants to declare 2 invoices out of total 10 invoices issued by him in a month because his recipient wants to avail benefit of those invoices in the month itself then details related to those 2 invoices may be furnished using IFF.

Due Dates for IFF

Invoices are to be furnished in IFF between 1st to 13th of the succeeding month. After 13th of the month, this facility of furnishing IFF for the previous month would not be available. For example, invoices for the month of July may be uploaded from 1st to 13th August.

The details of invoices furnished using IFF in the first two months of the quarter are not required to be furnished again in GSTR 1 for the said quarter.

Limit of IFF

Taxpayers opting for QRMP scheme may furnish the details of such outward supplies to a registered person as he may consider necessary, for the 1st and 2nd months of the quarter, up to a cumulative value of 50 lakhs in each of the first two months of the quarter using IFF electronically on the common portal.

If the aggregate value of invoices exceeds 50 lakhs in any month, then those invoices will be filed next month. However, invoices pertaining to the last month of the quarter are to be uploaded in GSTR-1 only.

Details required to be furnished in IFF

In IFF taxpayer has to submit the B2B invoice details of both interstate and intra state supply transactions along with debit and credit notes of B2B invoices issued during the month.

The details of outward supplies furnished using IFF shall include the-

1. Invoice wise details made to registered person i.e. B2B (interstate and intra state)
2. Debit and credit notes if any, issued during the month for such invoices issued previously.

If a registered person does not opt to upload invoices using IFF then he has to upload details of all the 3 months of quarter in GSTR-1.

Details submitted in IFF reflects in GSTR-2B (normal taxpayers), 4A (composition scheme) and 6A (Input service distributor).

In what cases a registered person is not eligible to furnish details of outward supplies in GSTR-1/IFF

• A registered person opting for QRMP scheme shall not be allowed to furnish details of outward supplies in form GSTR-1 or using IFF, if he has not furnished GSTR 3B for the preceding tax period.
• A registered person who is restricted from using the amount available in electronic credit ledger to discharge his liability towards tax in excess of 99% of such tax liability under rule 86B of CGST rule, shall not be allowed to furnish details of outward supplies in form GSTR-1 or using IFF, if he has not furnished GSTR-3B.

How to file IFF form

1. Firstly, visit GST portal www.gst.gov.in.
2. Then click on services> returns> Returns dashboard
3. Select FY and return filing period and click on search button
4. Choose invoice furnishing facility, click on prepare online button and fill the details of invoices.
5. Otherwise click on the prepare offline button if you want to use GST offline tool to prepare IFF summary. Prepare JSON file and upload it on GST portal. And again go to Prepare online section.
6. After filling in all the details click on the generate IFF summary button.
7. Now you can see the preview before freezing the data. In case there are any errors, you can correct them at this stage.
8. Finally, select the acknowledgement box and click on the submit button.
9. And now you are ready to file your IFF by using DSC or EVC.

Late fee in case of IFF

There will be no late fee applicable in case of late filing of IFF, as IFF is not mandatory, it is an optional facility and moreover IFF is not allowed to be filed after the due date.

After the due date, you will be able to only view or download IFF form but not to submit it. Further it is to be noted that you can reset the details filled and saved before end date by clicking reset button on GSTR1/IFF page.

Important sections/notifications