The Indian Government has come up with a new rule of blocking e-way bill to
- increase compliance under GST and
- minimize the tax frauds.
Why Blocking ?
The blocking of e-Way bill generation facility means disabling the taxpayer from generating e-Way bill if an entity has not filed 2 or more consecutive GSTR-3B returns on the GST Portal.
Example: Mr Ram has filed the returns till September 2019, but he did not file the GSTR-3B for October and November 2019. Thus, he is blocked from generating e-Way Bill from 02nd December 2019.
Effect of Blocking ?
e-Way Bill cannot be generated either by the taxpayer or by their counter party or the transporter when the e-Way Bill generation facility is blocked for the GSTIN.
Effective Date
Blocking and unblocking of e-Way Bill is implemented on GST Portal with effect of 02nd Dec 2019
Unblocking of E- Way Bill generation facility
The E- Way bill generation facility will be automatically unblocked in the event of filing all default returns. The default return period should be less than 2 months for unblocking e-Way Bill. The blocking will be automatically lifted on the e-Way Bill system next day.
Note: For immediate updating of status, the taxpayer can go to EWB Portal and select the option “Search Update Block Status“, enter their GSTIN and use update option to get themselves unblocked from GST Portal. The only condition is that they should file all GST Returns.
e-Way Bill generation facility can also be restored by Jurisdictional tax official on the basis of manual representation by the taxpayer. The Tax officials will issue a speaking order on GST Portal for accepting or rejecting such requests.
Effect on already generated E-Way bills: e-Way Bills already generated and facilities such as updating vehicle details, transporter details, and extension of validity of EWB will not be impacted in case of blocked GSTINs.
Effect on Transporter registered on EWB Portal: The Transporter whose GSTIN is blocked cannot use their GSTIN as Consignor, Consignee or Transporter to generate e-Way Bill, and update transporter details.
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