Invoice Furnishing Facility (IFF) Under GST

One of the major challenges that were faced by the large taxpayers was the deferral in receiving ITC when goods or/and services were purchased or rendered from small taxpayers documenting quarterly returns. 

So, the government introduced the Invoice Furnishing Facility (IFF) to eliminate the burden on large taxpayers and give a lift to small taxpayers. In this article, we will cover all the aspects related to Invoice Furnishing Facility (IFF) under GST.

What Is Invoice Furnishing Facility (IFF) Under GST?

Invoice Furnishing Facility (IFF) is a facility provided to small taxpayers with a turnover of up to INR 1.5 crore.  It gives the flexibility to these quarterly GSTR-1 filers to upload their invoices on the GST portal every month. The IFF will help businesses in claiming GST credit timely and consistently. The Invoice Furnishing facility is available on the GST portal from 01.01.2021.

Invoice Furnishing Facility (IFF) Applicability

1. A small taxpayer recording quarterly returns will have the choice to use the Invoice Furnishing Facility (IFF) for the 1st and 2nd month of the quarter, wherein, the small taxpayer can file the subtleties of the outward supplies (not surpassing the estimation of INR 50 lakhs) in every month, between the 1st and 13th day of the next month.
2. Through the Invoice Furnishing Facility (IFF), the registered taxable person can mention B2B supplies (between state and intra-state) alongside the credit or debit notes (CDN) details issued during the month.
3. The taxable registered person can transfer all invoices for the month in the Invoice Furnishing Facility (IFF) or decide to transfer invoices just for specific customers who want to claim ITC.
4. The details transferred in the Invoice Furnishing Facility (IFF) will get auto-populated in the following tables
5. GSTR-2A/GSTR-2B/GSTR-4A/GSTR-6A: B2B Invoices
6. GSTR-9B: Credit/ Debit Notes (Registered)
7. GSTR-9A: Amended B2B Invoices
8. GSTR-9C: Amended Credit/ Debit Notes (Registered)

Purpose Behind The Introduction of Invoice Furnishing Facility (IFF)

The purpose behind the introduction of IFF under GST was to ease the burden of tax compliance and to claim ITC. Before the introduction of the Invoice Furnishing Facility, any taxpayer whose aggregate turnover in the previous financial year is less than INR 1.5 Crores can opt for the QRMP scheme. This created problem in claiming ITC for the purchase made from the small taxpayers.

Benefits of Invoice Furnishing Facility (IFF)

Here is the list of Invoice Furnishing Facility (IFF) benefits:

1. Increased business opportunities for small taxpayers.
2. The lesser burden of GST compliance due to regular reconciliation of records.
3. Large taxpayers can claim ITC seamlessly.
4. Increased cash flow.
5. The relationship between large and small taxpayers will improve.

Important Points To Note About IFF

Here are some of the important points that shall be kept in mind at the time of using Invoice Furnishing Facility (IFF):

1. The Invoice Furnishing Facility (IFF) can only be used by the registered taxable person for the first 2 months during a quarter.
2. The taxpayer needs to file GSTR-1 for the invoices of the last month of a quarter.
3. If the invoice details are uploaded in the Invoice Furnishing Facility (IFF), the taxpayer does not have to file GSTR-1 for that particular tax period.
4. The total value of invoices that can be uploaded in the Invoice Furnishing Facility (IFF) is limited to INR 50 lakh per month.

How Can GSTrobo® Help you?

GSTrobo® a division of Binary Semantics Ltd is one of the leading ASP- GSP who provides industry-leading GST compliance software such as GST, e-way bill, and e-invoicing software. These solutions not only seamlessly integrate with all the ERPs but also automates most of your GST compliance needs saving your precious time and efforts.

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