Invoice Furnishing Facility (IFF): Monthly Invoice Reporting for Quarterly GST Filers

Invoice Furnishing Facility (IFF) is an optional facility available to eligible taxpayers filing GSTR-1 quarterly under the QRMP Scheme. It allows taxpayers to report eligible outward supply invoices for the first two months of a quarter so that their business customers can receive input tax credit information earlier.

What is Invoice Furnishing Facility (IFF)?

IFF is governed by Rule 59(2) of the Central Goods and Services Tax Rules, 2017. It was introduced through Notification No. 82/2020-Central Tax dated 10 November 2020, effective from 1 January 2021. (GST Council)

Under IFF:

• Quarterly taxpayers under the QRMP Scheme can furnish details for the first two months of each quarter.

• IFF is optional and is primarily useful where customers require invoice details for claiming ITC.

• The facility is available only for the first and second months of a quarter (M1 and M2).

  Need help with this? Talk to A. S. Darve & Co. →

• The third month's supplies are reported in the regular quarterly Form GSTR-1.

Who Can Use IFF?

The facility is available to taxpayers who are eligible for and have opted for quarterly filing under the QRMP Scheme. GSTN currently states that taxpayers with aggregate turnover up to Rs. 5 crore, subject to the applicable QRMP conditions, can opt for quarterly GSTR-1 and GSTR-3B filing. (GST Tutorial)

What Details Can Be Furnished?

The GST Portal currently provides IFF for specified outward supply documents, including:

• B2B invoices

• Credit and debit notes issued to registered persons

• Amendments to B2B invoices

• Amendments to credit/debit notes

The GSTN FAQ identifies the relevant GSTR-1 tables as 4A, 4B, 4C, 6B, 6C, 9B, 9A and 9C. (GST Tutorial)

IFF Due Date and Limit

As prescribed under Rule 59(2):

• IFF is available from the 1st day of the succeeding month.

• The normal cut-off date is the 13th day of the succeeding month.

• The cumulative value of supplies furnished through IFF is restricted to Rs. 50 lakh for each of the first two months of the quarter. (GST Council)

If details are not submitted within the applicable period, the taxpayer can report the remaining supplies in the subsequent IFF, where applicable, or in the quarterly GSTR-1. GSTN also clarifies that once an IFF is submitted, it must be filed; otherwise, the quarterly GSTR-1 cannot be filed. (GST Tutorial)

Benefits of Using IFF

IFF can be particularly useful for businesses supplying goods or services to GST-registered customers because:

• Invoice details can reach the recipient earlier.

• Eligible invoices filed through IFF flow to the recipient's GSTR-2A and GSTR-2B.

• Customers can obtain visibility of eligible ITC earlier.

• The same invoice details do not need to be entered again in the quarterly GSTR-1. (GST Tutorial)

Conclusion

IFF is a useful optional facility for QRMP taxpayers who want to maintain quarterly GST compliance while providing invoice information to their registered customers on a monthly basis. Businesses should evaluate their customer requirements, invoice volumes and ITC expectations before deciding whether to use IFF.

For expert guidance on this topic, contact your tax professional today.

EXCERPT: IFF lets eligible QRMP taxpayers report invoices monthly for the first two months of a quarter, helping customers receive ITC information earlier.

SEO_TITLE: Invoice Furnishing Facility (IFF) Guide for GST

SEO_DESCRIPTION: Learn how IFF works for QRMP taxpayers, including eligibility, limits and due dates. Consult a tax professional for GST compliance guidance.