Restriction on GSTR-1 filing: portal automatically blocks GSTR-1/IFF until required GSTR-3B returns are filed without officer approval.
Rule 59(6) bars furnishing outward-supply details in FORM GSTR-1 or via the Invoice Furnishing Facility until the registrant has furnished required FORM GSTR-3B returns for the specified prior tax-periods. The GST Portal will, from 1 September 2021, automatically check compliance on SUBMIT of GSTR-1/IFF, block filing with an error message if unmet, preserve saved records for later filing, and restore filing immediately upon receipt of the requisite GSTR-3B without tax-officer intervention.

Input tax credit fraud uncovered; alleged use of shell firms to pass fake ITC prompts arrests and ongoing probe.
Allegations of a racket to fraudulently pass on Input Tax Credit through shell entities prompted arrests after DG-GST Intelligence investigations traced creation and control of non existent firms issuing fabricated invoices. A chartered accountant is accused of managing identified fake firms and holding further incriminating evidence, while a partner at an accounting firm is accused of facilitating fake ITC transfers; both were remanded and further investigation is ongoing to identify additional controlled entities and documentary proof.

Audit compliance webinars provide taxpayer guidance on GST audit procedures with live Q&A and recorded sessions available.
GSTN has activated an audit functionality and is conducting multilingual webinars titled "Complying with Audit by Taxpayers" to familiarise stakeholders with compliance procedures; sessions are delivered by GSTN officials via YouTube with live chat Q&A and recordings available on GSTN's dedicated channel for later viewing.

GST Portal functionalities updated with module-wise resources and tutorial links for taxpayer compliance and guidance.
Implementation of new digital features on the GST Portal enhancing taxpayer interaction and compliance across core modules. The release documents a package of module-wise functionalities introduced for Registration, Returns, Advance Ruling, Payment, Refund and miscellaneous topics, together with related stakeholder outreach through webinars and informational videos and links to compiled release notes and GSTN YouTube videos.

Fraudulent input tax credit exposed as directors arrested for issuing fake invoices and passing illegitimate GST credits.
Allegations concern input tax credit (ITC) fraud through issuance of invoices without concomitant supply of goods; a firm allegedly used fraudulent invoices and fabricated transport records to show purchases from a non existent supplier, enabling it to claim and pass on ITC. Documentary evidence and statements linked two directors as central participants, who were arrested and remanded to judicial custody; an aggregate fraudulent ITC of Rs. 10.33 crore has been identified and the investigation is ongoing.

Bank account update requirement for GST registrations: taxpayers must furnish bank details via non-core amendment; system enforces compliance.
Bank account update requirement under the GST registration regime obliges newly registered taxpayers to furnish bank account particulars within the prescribed period after first login via the Non core amendment path; required fields include account number, IFSC, bank address and account type, verification by authorized signatory, and submission using DSC, e sign or EVC. The portal will prompt and enforce compliance for failures to update, and a success message plus acknowledgment are issued upon completion.

Blocking of e-way bill generation resumes; non-filing of consecutive returns will trigger e-way generation restriction.
Resumption of automated blocking of E-Way Bill generation from 15 August 2021 will occur where the system detects non filing of two or more monthly GSTR 3B returns up to June 2021 or two or more CMP statements for quarters up to April-June 2021; the portal will check Form GSTR 3B and Form GST CMP 08 filing status and restrict EWB generation accordingly, and taxpayers are advised to file pending returns or statements and consult the EWB portal user guide for blocking and unblocking procedures.

GST compliance verification strengthened through Aadhaar authentication and registration controls to curb tax evasion and fraudulent ITC claims
To prevent and detect GST evasion, GSTN/CBIC has implemented validations including Aadhaar authentication of new registrations with physical verification when authentication fails, verification of cancelled or existing registrations before issuing new registrations, powers to suspend or cancel registrations on departmental notice, bulk suspension/cancellation based on business intelligence and prolonged non filing, blocking of Input Tax Credit, and ITC verification through GSTR 2A generation.

Input tax credit fraud detection spurred strengthened registration, filing, e invoice and ITC blocking safeguards to curb misuse.
CGST formations detected ITC fraud totalling over thirty-one thousand crore in FY 2020-21 across 7,268 cases. To curb misuse the Government implemented measures including AADHAR authentication for new registrations, verification of existing or cancelled registrations, suspension and cancellation powers, bulk suspensions by GSTN, additional cancellation grounds for GSTR 1/GSTR 3B mismatches, blocking of GSTR 1 filing where multiple GSTR 3B returns are unfiled, mandatory e invoicing for specified B2B turnover, e way bill restrictions for non filing, and ITC blocking under Rule 86A where fraudulent availing is suspected.

GST revenue rebound signals recovery as collections rise and state receipts increase after pandemic disruptions.
The press release reports consolidated GST revenue for July 2021, detailing component-wise collections (central, state, integrated and cess), inclusion of import-related receipts and GSTR-3B filings, and the effect of temporary relief measures on reporting. It records routine IGST settlement transfers to CGST and SGST and compares month-to-month and year-on-year performance, attributing prior month weakness to COVID-related lockdowns and treating the July recovery as evidence of economic improvement, accompanied by a state-wise table of collections and growth rates.

Bank account update requirement: taxpayers must furnish bank details via the GST portal, which enforces compliance and verification.
Taxpayers with new GST registration must update bank account details on the GST portal within the prescribed period after first login; the portal now checks update status and will prompt and force compliance. The update is made via the Non-core amendment workflow under Services Registration Amendment of Registration Non-Core Fields Bank Accounts, requiring account number, IFSC, account type and address, verification by an authorized signatory, and signing by DSC, e-sign or EVC. Successful updates produce an on-screen message and electronic acknowledgment to the registered email and mobile.

Annual Aggregate Turnover displayed on portal with taxpayer amendment facility; further changes subject to tax officer review.
A dashboard feature now displays exact Annual Aggregate Turnover (AATO) for the prior year and current fiscal year aggregate turnover based on filed returns, and provides a turnover update facility for taxpayers to amend system calculated figures. Amendments by any GSTIN on a common PAN are aggregated for each GSTIN's AATO. Taxpayers may amend twice within one month of rollout; further changes require review by the Jurisdictional Tax Officer. Advisory details are on the dashboard.

GST compliance recognition: government issued appreciation certificates to taxpayers for timely returns and substantial tax contribution.
The government issued Appreciation Certificates to taxpayers for substantial contribution in GST payment and timely filing of returns on the four year anniversary of GST; the announcement provides a state and Union territory breakdown of recognised GST registrations, totaling fifty four thousand four hundred thirty nine certificates.

Negative liability reporting: composition taxpayers must declare annual liability to prevent quarterly prepayments becoming excess credits.
Composition taxpayers must declare the full year's tax liability in the annual GSTR return and complete Table 6; otherwise, quarterly CMP payments auto-populated in the return may be treated as excess tax and recorded as a negative liability (credit) available for future utilisation, or corrected by raising a support ticket to nullify the entry.

GST compensation fund transfers and back-to-back borrowing used to address State revenue shortfalls under the compensation framework.
GST compensation dues for FY 2020-21 and 2021-22 were paid using the non-lapsable GST Compensation Fund and by the Centre borrowing through a special window and passing proceeds as back-to-back loans to States/UTs after GST Council deliberations, to address pandemic-related shortfalls in cess receipts and higher compensation requirements while continuing regular compensation releases as Fund balances permit.

GST Portal functionality updates provide webinar guidance on registration, returns, ledgers and refunds with live Q&A.
GSTN has deployed new portal functionalities for registration, returns, ledgers and refunds and is conducting language-specific webinars (Tamil, English, Marathi) led by GSTN staff. Participants can join via YouTube links, ask questions through live chat/comments for panel responses, and view recordings later on GSTN's dedicated YouTube channel.

Back-to-back loan facility funds released to states to address GST compensation shortfall, enabling fiscal planning and health infrastructure
Frontloaded disbursement to States and UTs with Legislature has been made under a back-to-back loan facility to address the GST compensation shortfall. The Central Government has borrowed in marketable securities of distinct tenors and yields and passed those funds to recipients on matching tenors, supplementing regular compensation releases from cess collections. All eligible recipients agreed to the arrangement; the instalmentary release supports near-term fiscal management, capital expenditure and COVID-19 related public health measures, with the remaining balance to be released in the second half of the financial year.

Input Tax Credit misuse drives nationwide enforcement targeting fake invoices, arrests, strengthened investigative tools and compliance.
Misuse of Input Tax Credit under GST has been countered by a nationwide enforcement drive using digital evidence, inter-departmental information sharing and procedural measures to detect nonexistent suppliers, bogus invoices and fraudulent refund claims. Investigations have targeted paper firms, professional facilitators and beneficiary networks through searches, seizures of electronic devices and arrests, and have also addressed related evasion modes such as misclassification, undervaluation and clandestine supplies.

GST Portal updates: webinars explain new Returns, Ledgers and Payments functionalities with live chat and recordings available online.
GSTN has deployed new functionalities for Returns, Ledgers and Payments on the GST Portal and is hosting language-specific webinars to demonstrate those features, allow stakeholders to post queries in live chat/comments for panel responses, and provide session recordings on its YouTube channel for later access.

Timelines for revocation of cancellation restored; portal will display late fee details and auto populate GSTR 11.
Timelines for filing applications for revocation of cancellation of registration are restored to the prior regime, with portal filing in Form GST REG-21 required within the original prescribed period from the order of cancellation. The portal will display late fee liabilities in online Form GSTR-10 via a hyperlink, and Form GSTR-11 for UIN holders will be auto-populated from supplier returns to aid quarterly filing and refund claims.