What is IFF In GST | Difference Between GST R1 & GST IFF

Today I will tell you what is IFF (Invoice Furnishing Facility) return in GST and how it is different from GST R1 And some more things related to IFF that you should know.

What Is IFF (Invoice Furnishing Facility) In GST

Till the time the IFF (Invoice Furnishing Facility) was not introduced, this problem always remained whenever a regular scheme firm used to purchase goods and services from a firm whose GST R1 and 3B Return was filed quarterly. So the Buyer firm (regular scheme firm) had a lot of difficulty in getting the input tax credit of the Goods and Services purchased by the quarterly return filling firm.

This used to happen because if a firm opted for the regular scheme, it had to file its GST R1 and 3B every month. 

While the quarterly opted firm had to file GST R1 & 3B after 3 months.

That is why until the quarterly opted scheme firm did not file their GST R1 Till then the regular scheme firm did not get the input tax credit.

To overcome this problem, a facility has been introduced which we know as IFF (Invoice Furnishing Facility)

If a firm has opted for a quarterly scheme, then it will file its GST R1 & 3B return only after the quarter is over.

But now that firm will also have an IFF (Invoice Furnishing Facility) option in which it can report the sales made in that month by filing IFF (Invoice Furnishing Facility) returns for the first 2 months of the quarter Because, at the end of the 3rd month, they will have to file their GST R1 return In which the sale report of the whole quarter will be given.

This will mean that if a firm with the quarterly opted scheme files an IFF (Invoice Furnishing Facility) then the sales report of the quarterly opted scheme firm will be updated on the GST portal And the other firm which is opted into the regular scheme, that firm claim Input tax credit on goods and service which they had purchased from quarterly opted scheme firm.

Difference between GST R1 And GST IFF (Invoice Furnishing Facility)

Filing GST R1 is compulsory. For every Regular scheme opted firm is required to file GST R1 return every month.

GST R1 Due Dates On Turn Over Basis

While GST IFF is an optional return for Quarterly opted scheme firms. They can show the sale invoices of the 1st and 2nd month of the quarter in the IFF return of every month.

 So that the purchasing firm can get an input tax credit for the purchases made by them. Invoices for 3rd month of the quarter can be Filed in GST R1 Return after the quarter end.

 After that, the sales report for the entire quarter will be accumulated and shown on the portal.

Is any plenty applicable on late filing of IFF (Invoice Furnishing Facility) ?

Even if you do not file the IFF return by the due date, no penalty will be applicable Because it is not compulsory to file the IFF return and you cannot file it after the due date. 

Do we have to re-upload the bills uploaded in IFF Return of 1st & the 2nd month of the quarter while filing GST R1?

No, the bills which you have uploaded in the IFF return of the 1st and 2nd months are not required to be uploaded again at the time of the GST R1 Return.

Can I Fill GST IFF (Invoice Furnishing Facility) Return After the Due Date

You can not file GST IFF (Invoice Furnishing Facility) return after the due date has passed.