Simplify quarterly GST! Upload B2B invoices monthly with IFF. Faster credit transfer, easier reconciliation.
Addressing a long-standing challenge faced by small GST-registered businesses, the Central Board of Indirect Taxes and Customs (CBIC) has introduced the Invoice Furnishing Facility (IFF). This innovative mechanism facilitates faster input tax credit (ITC) flow to recipients, alleviating the burden of quarterly GSTR-1 filing. This article provides a comprehensive overview of the IFF, including its governing provisions, key deadlines, and a step-by-step guide for filing on the GST portal. Additionally, we highlight key points to ensure seamless utilization of this valuable new tool. By leveraging the IFF, businesses can enhance their compliance efficiency and optimize their working capital.
What is Invoice Furnishing Facility?
The Invoice Furnishing Facility (IFF) is a boon for small taxpayers registered under the Goods and Services Tax (GST) in India. It allows them to upload details of their outward supplies (B2B invoices and credit/debit notes) for the first two months of a quarter monthly instead of waiting until the quarterly filing deadline for Form GSTR-1. This speeds up the process of transferring input tax credit (ITC) to their recipients, easing their cash flow and compliance burden.
Features of Invoice Furnishing Facility (IFF)
- Accelerated ITC Transfer: By facilitating monthly reporting of B2B invoices and credit/debit notes for the first two months of a quarter (M1 and M2), IFF expedites the flow of ITC to recipients. This enhances their working capital and cash flow management.
- Simplified Compliance: Filing monthly IFFs reduces the burden of accumulating invoice details for quarterly GSTR-1 submission, leading to a more streamlined compliance process.
- Improved Reconciliation: Regular reporting of invoices fosters better recordkeeping and simplifies the reconciliation process at the end of the quarter.
Eligibility and Implementation for IFF
- Eligible Entities: Only registered persons with an annual aggregate turnover of up to INR 5 crore and opting for the Quarterly Returns Monthly Payment (QRMP) scheme can utilize the IFF.
- Filing Frequency: IFF submissions for M1 and M2 are due by the 13th of the succeeding month. The third month (M3) requires filing through the regular Form GSTR-1.
- Optional Facility: Participation in the IFF is voluntary. Businesses can choose between the monthly IFF approach and the conventional quarterly GSTR-1 filing.
Benefits for SMBs
- Enhanced cash flow for buyers through faster ITC availability.
- Reduced compliance workload and improved efficiency.
- Simplified recordkeeping and reduced reconciliation errors.
Provisions Governing the Invoice Furnishing Facility
The Invoice Furnishing Facility (IFF) is governed by several provisions outlined in the Central Goods and Services Tax (CGST) Rules, 2017, specifically under Rule 59(2) as amended by Notification No. 82/2020-Central Tax dated 10th November 2020. Here are some key provisions:
Eligibility:
- Turnover Limit: Only registered persons with an annual aggregate turnover of up to Rs. 5 crore are eligible.
- QRMP Scheme: Participation in the Quarterly Returns Monthly Payment (QRMP) scheme is mandatory for IFF access.
- Invoice Type: Only B2B invoices and credit/debit notes are allowed for furnishing through IFF. B2C transactions are not covered.
- Filing Frequency: IFF submissions are due by the 13th of the month following M1 and M2.
- Optional Facility: Participation in IFF is optional. Businesses can choose between IFF and the regular quarterly GSTR-1 filing.
Filing Requirements:
- Cumulative Value Limit: The total value of invoices uploaded through IFF for each month (M1 and M2) cannot exceed Rs. 50 lakhs.
- Invoice Details: Specific details like invoice number, date, value, GST details, and recipient information must be provided.
- Digital Signature: A valid digital signature certificate is required for electronic filing of IFFs.
Submission and Processing:
- Online Filing: IFFs must be submitted electronically through the GST portal.
- Finality of Submission: Once submitted, IFFs cannot be modified or withdrawn.
- Modification and Correction: Any errors or omissions can only be rectified through the subsequent month’s IFF or quarterly GSTR-1 filing.
- Consequences of Non-Compliance: Failure to file IFFs on time or exceeding the value limit may attract late fees or penalties.
Due dates for filing IFF and Form GSTR-1
| Period | Form | Due Date |
| 01/2024 | IFF | 13/02/2024 |
| 02/2024 | IFF | 13/03/2024 |
| 03/2024 | GSTR-1 | 13/04/2024 |
| 04/2024 | IFF | 13/05/2024 |
| 05/2024 | IFF | 13/06/2024 |
| 06/2024 | GSTR-1 | 13/07/2024 |
| 07/2024 | IFF | 13/08/2024 |
| 08/2024 | IFF | 13/09/2024 |
| 09/2024 | GSTR-1 | 13/10/2024 |
| 10/2024 | IFF | 13/11/2024 |
| 11/2024 | IFF | 13/12/2024 |
| 12/2024 | GSTR-1 | 13/01/2025 |
Steps for Filing Invoice Furnishing Facility on GST Portal
- Access the GST Portal:
- Visit the official GST portal at https://www.gst.gov.in/.
- Login:
- Click on the ‘Login’ button.
- Enter your credentials:
- Username
- Password
- Characters shown
- Navigate to Returns Dashboard:
- After successful login, click on ‘Services’ on the menu bar.
- From the drop-down list, select ‘Returns’ and then ‘Returns Dashboard’, respectively.
- Select Financial Year and Period:
- Choose the relevant ‘Financial Year’ and ‘Period’.
- Click on ‘SEARCH’.
- Access Invoice Furnishing Facility (IFF) Table:
- A table displaying ‘Details of the outward supplies of goods or services – Invoice Furnishing Facility – Optional’ will appear.
- Choose Online or Offline Mode:
- To file IFF via online mode, select ‘PREPARE ONLINE’.
- For filing IFF via offline mode, choose ‘PREPARE OFFLINE’.
- Enter Details:
- Submit the required details in the respective fields.
- Submission:
- After entering the details, click on the ‘Submit’ button.
- Authenticate Submission:
- Authenticate the submission either using a Digital Signature Certificate (DSC) or through Electronic Verification Code (EVC).
- Completion:
- Once successfully submitted and authenticated, the IFF filing process is complete.
Get in touch with our Vakilsearch expert and know more!
List of Invoice Furnishing Facility Important Points
| Details/Data to be Furnished in IFF: | Corresponding Information |
| Table 4A, 4B, 4C and 6B, 6C – B2B Invoices | Details of goods/services sold to the registered taxable person |
| Table 9B – Credit or Debit Notes (Registered) | Details of credit notes or debit notes issued to the registered taxable person |
| Table 9A – Amended B2B Invoices | Amendments related to details of outward supplies to the registered taxable person covering earlier tax periods |
| Table 9C – Amended Credit or Debit Notes (Registered) | Amendments related to details of credit notes or debit notes issued to the registered taxable person covering earlier tax periods |
| B2B Transaction Details in IFF: | Corresponding Reflective Forms |
| B2B Transactions Furnished via IFF | Form GSTR-2A; Form GSTR-2B; Form GSTR-4A or Form GSTR-6A of the recipient of goods/services or both |
| Summary of Invoice Furnishing Facility: | |
| Availability: | For registered persons filing Form GSTR-1 on a quarterly basis |
| Mandatory Opt-In: | No |
| Filing Details: |
|
| Quarterly Return: | Must file quarterly return in Form GSTR-1 |
| Return Coverage: | Covers all invoice details of the third month of the quarter and pending details of the first and second month of the quarter |
| Redundancy Prevention: | Details already furnished in IFF should not be re-furnished in Form GSTR-1 return |
| Invoice Furnishing Facility Overview: | |
| Invoice Furnishing Facility Availability: | Optional |
| Effective Date: | 1st January 2021 |
FAQ
What is the Invoice Furnishing Facility (IFF)?
The Invoice Furnishing Facility (IFF) is an optional scheme offered to quarterly GST taxpayers under the QRMP scheme (Quarterly Return Monthly Payment). It lets taxpayers upload details of their outward supplies (B2B invoices, credit/debit notes) for the first two months of a quarter (M1 and M2). This helps their recipients claim input tax credit (ITC) earlier.
Who is eligible for the Invoice Furnishing Facility (IFF)?
You are eligible for IFF if you are: A registered taxpayer under the QRMP scheme Have an annual aggregate turnover of up to Rs. 5 crore
What is the due date for filing IFF?
The due date for filing IFF for each month (M1 and M2) is the 13th of the next month. For example, the due date for filing M1's IFF is the 13th of the second month in the quarter.
Conclusion:
The Invoice Furnishing Facility presents a valuable opportunity for small and medium-sized businesses under GST registration to streamline their compliance processes and optimize their financial health. By leveraging this innovative mechanism, businesses can benefit from faster ITC transfer, simplified compliance, and improved financial management
