Invoice Furnishing Facility (IFF) Under GST: A Practical Guide

Invoice Furnishing Facility (IFF) is an optional GST facility for eligible taxpayers under the Quarterly Return Monthly Payment (QRMP) Scheme. It allows quarterly GSTR-1 filers to report selected B2B invoices monthly, helping customers receive timely input tax credit (ITC).

Who can use IFF?

Under Notification No. 84/2020–Central Tax dated 10-11-2020, taxpayers required to file Form GSTR-3B and having aggregate turnover up to ₹5 crore in the preceding financial year may opt for QRMP.

If turnover exceeds ₹5 crore during a financial year, the taxpayer becomes ineligible for QRMP from the following quarter. This is clarified in CBIC Circular No. 143/13/2020-GST dated 10-11-2020.

How IFF works

Rule 59(2) of the CGST Rules, 2017 permits QRMP taxpayers to furnish details of outward supplies made to registered persons during the first and second months of a quarter through IFF.

Key conditions include:

• IFF may be used only for the first two months of a quarter.
• Invoice details can be submitted from the 1st day of the following month until the 13th day of that month.
• The value of supplies reported through IFF cannot exceed ₹50 lakh in each month.
• IFF is optional; taxpayers may instead report all eligible outward supplies in the quarterly Form GSTR-1.
• Details uploaded through IFF need not be reported again in the quarterly GSTR-1, as provided under Rule 59(3).

For example, invoices for April may be furnished through IFF from 1 May to 13 May.

Why should businesses consider IFF?

IFF is especially useful where customers are registered under GST and expect invoices to appear promptly in their Form GSTR-2B. As clarified in Circular No. 143/13/2020-GST, invoices furnished through IFF are reflected for the recipient in Form GSTR-2A and Form GSTR-2B, enabling timely ITC visibility.

This can improve customer relationships, reduce follow-ups on missing invoices, and support smoother reconciliation.

Important compliance points

IFF does not replace monthly tax payment. QRMP taxpayers must continue to pay tax for the first two months of the quarter through Form GST PMT-06, where applicable, and file quarterly Form GSTR-3B.

Taxpayers should also ensure that prior return-filing obligations and bank-account details are up to date. Rule 59 contains restrictions that can prevent IFF use in certain cases, including non-filing of the preceding GSTR-3B.

IFF is a valuable option for QRMP taxpayers with regular B2B supplies. For expert guidance on this topic, contact your tax professional today.

EXCERPT: Learn how the GST Invoice Furnishing Facility helps QRMP taxpayers report B2B invoices monthly and support timely ITC for customers.

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