A Guide on Invoice Furnishing Facility (IFF)
The Invoice Furnishing Facility is an option for QRMP taxpayers to file business-to-business (B2B) invoices each month in a quarter while filing the GSTR 1 quarterly. IFF is an optional facility and taxpayers can choose to opt for it or not. it does not attract any penalties or interest for non-usage.
To benefit small taxpayers who are registered under the QRMP scheme, the government introduced the IFF facility. The IFF contains the following details from form GSTR 1
- 4A, 4B, 4C, 6B, 6C- B2B Invoices
- 9B- Credit/Debit Notes (Registered)
- 9A- Amended B2B Invoices
- 9c- Amended Credit/Debit Notes (Registered)
Who Can Use the Invoice Furnishing Facility?
The government introduced IFF to help the small-scale taxpayers who are enrolled under the QRMP scheme. Businesses having annual turnover of less than Rs 5 Cr in the previous financial year can file GSTR 1 and GSTR 3B quarterly. But it limits their Input Tax Credit claims as they file the returns quarterly, they can only claim the ITC by the end of the quarter, disrupting the cash flow of the business.
However, the taxpayers have chosen to opt for the invoice furnishing facility, they can record invoices monthly and can make claims for ITC regularly as well.
How IFF Benefits Taxpayers?
- There is no late fee payable if one misses recording invoices in IFF unlike GSTR 1. In case a taxpayer has not filed IFF invoices in a month, they will lose ITC for that particular month but no other charges applicable
- Easier return filing for taxpayers as it facilitates monthly invoice recording regularly
- Faster and instant Input Tax Credits for small taxpayers, increasing cash flow
- B2B sales details auto-populate in GSTR 1, therefore is no need to file the records again the GSTR 1
- Easier compliance and filing flexibility. If an individual has recorded B2B invoices before the due date but forgot to complete the filing, they can submit it later on condition that they have recorded all required information before the due date
The invoice Furnishing Facility is optional to opt for. It benefits small taxpayers and increases the cash flow of the business. By opting for the IFF, taxpayers can make compliance smoother as they get the chance to record the invoices monthly.
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