Taking a step towards curbing the Tax evasion and enhancing the tax revenue collection, the Government has imposed a new rule of blocking the E-way Bill generation of certain Taxpayers. These are the taxpayers with a default in their punctuality in the context of filing Tax returns.
Taxpayers Who have not filed their tax returns (GSTR-3B) for two or more previous consecutive months/quarters would be barred from generating any further E-wayBills, from the E-way Bill Portal, effective from December 2, 2019. Such GUSTIN cannot be used for generating e-way bills, neither as consignors nor as consignees; so, can they neither send nor receive goods/consignments.
For example, a taxpayer’s GSTIN shall be blocked from the E-way Bill Portal, from the month of December, if they have not filed their GSTR-3B for the month of October and November. In this case, they will no longer be able to generate E-way bills for further transactions, unless they file the pending GSTR-3Bs.
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Why is E-way Bill Generation Blocking implemented?
The most basic answer to this question would be, to curb the circumvention of taxes and to monitor the rate of GST filing.
As per current GSTN records, an estimate of 20.77 Lakh GSTINs did not file their GSTR-3B for the months of September and October. But 17% of the given number i.e. 3.5 Lakh GSTINs did have transactions in both the months in the E-way Bill system.
Fixating on the count of tax defaulters, the ability to generate E-way Bills of such taxpayers is blocked . This is an effective way to eliminate or at least reduce the tax evasion and hence enhance the Tax Revenue Collection.
This also creates transparency between businesses and the government and mandates their compliance with GST which further reduces the chances of malpractices.
The blocked GSTINs would further no longer be able to generate invoices unless they are unblocked from the portal.
How to Unblock E-way Bill Generation Facility?
There are four ways to unblock e-way bill generation for a blocked GSTIN.
1. Filing of The Pending GSTR-3B
One can get their GSTIN unblocked on filing the GSTR-3B for the defaulting/pending period completely or at least reduce the pending filing number to less than two consecutive months.
The GSTIN will be unblocked automatically once the defaulting GSTR-3Bs have been filed. To generate the E-way bill immediately after the filing, the following steps need to be followed-
1. On the E-way Bill Portal, select, ‘Search Update Block Status’
2. Enter GSTIN and captcha code, then click on ‘Go’
3. Click on ‘Update Unblock Status from GST Common Portal’ The most recent filing is reflected, and the e-way bill status will be updated to ‘unblock’ if the pending returns have been successfully filed.
2. GST Help Desk
A taxpayer can also reach out to the GST Help Desk in case the above mentioned procedure doesn’t work.
3. By a Jurisdictional Officer
In case of a genuine reason such as technical errors or emergencies, a taxpayer can give a manual representation to a Jurisdictional Tax Officer, who can then authenticate and accept the request, and unblock the GSTIN online on.
How to Unblock E-way Bill Generation Facility?
There is a crucial need for the businesses to be compliant with every new rule given by the GSTN.
In order for their businesses to run efficiently, it is essential that businesses must take the GST rules in utter consideration.
Non-compliance with this rule, in specific, may hinder the smooth path of the business and might result in stillness in the business process. And a still business is likely to end up in relics sooner or later.
E-way bills are really important documents to transport consignments worth Rs.50,000+, anywhere in the country.
Without an E-way bill, the vehicle can be seized and tax and/or penalties are levied, the consignment can even be detained in some cases.
So, transporting consignments without an E-way bill is a risky business and is generally avoided.
It would stop the import-export of consignments, this means immobilization and eventually isolation of the business.
This, in no time will result in loss and maybe even insolvency of the business.
So, it is important for businesses to accept, understand and be compliant with the GST Rules.
Frequently Asked Questions - E-Way Bill Blocking
(1) Why is my E-Way Bill generation facility blocked?
Ans. E-way bill generation facility will be blocked for the taxpayers who have not filed their GSTR-3B for the last two or more consecutive months or quarters, as per the new rule by GSTN.
(2) How do I get my E-way Bill generation unblocked?
Ans. In order to get your E-way bill generation facility unblocked, you need to file all the pending GST Returns, or at least reduce the number to less than 2.
Your facility will automatically be unblocked on the E-way bill portal.
For immediate unblocking you can go to the
E-way Bill Portal > update block status > enter GSTIN > click on Update
the latest filing status will be auto fetched from GST Portal and get unblocked. If the status still remains the same, contact the GST Help Desk.
(3) Due to technical/personal issues, I could not file the GSTR for the past months. How do I get my E-way Bill Generation Facility unblocked?
Ans. You can send a manual application/representation to a Jurisdictional Tax Official, for the unblocking of E-way Bill Generation Facility, stating appropriate reasoning and documentation.
The official will then authenticate it and decide if the application is approvable or not. If he approves the application, then the E-way Bill Generation Facility will be unblocked.
(4) Where can I view the status of my application for unblocking of E-way Bill Generation Facility?
Ans. The order issued by the tax official, whether the application has been accepted or rejected, is usually sent on the applicants’ Mail and as SMS on their registered mobile number.
Furthermore, a taxpayer can also log into the GST Portal and follow the steps-
Dashboard > Services > User Services > View Additional Notices/Orders and view the status.
(5) Will I get a reminder before my E-way Bill Generation Facility is barred again, after unblocking it by a Tax official?
Ans. 7 days before the mentioned due date on the E-way Bill Generation unblocking order, a reminder mail and SMS will be sent on the registered mail ID and mobile number .
(6) Non-filing of which GST Return can lead to blocking my E-way Bill Generation Facility?
Ans. The filing of GSTR-3B is mandatory on a monthly basis in order to avoid blocking one’s E-way Bill Generation Facility.
(7) What happens to the E-way bills generated prior to the blockage of my E-way Bill Generation Facility? Can I update the vehicle details or extend the E-way bill?
Ans. Already generated E-way bills stay intact even if the GSTIN is blocked. The e-way bills are valid and can be used to move the consignment without any problem.
Any updation of details to these e-way bills is also valid even if the transporters’ GSTIN is blocked. Prior generated E-way bills stay unaffected irrespective of the blocking of the E-way Bill Generation Facility.
(8) What is the effect of blocking of E-way Bill Generation Facility on Transporters?
Ans. The effects are different on both types of transporters-
A) If the GSTIN of the GST registered transporter is blocked then, the GSTIN cannot be used as Consigner, consignee or transporter.
B) On the other hand, if the transporter is E-way Bill enrolled then they can be considered as transporters while generating the e-way bill.
(9) Can recipient or transporters generate E-way bills on a blocked Supplier and vice versa?
Ans. No, neither parties (Supplier, recipient, and transporter) can create E-way Bills for a blocked supplier/recipient under any circumstances.
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