Blocking And Unblocking Of E Way Bill

The blocking of e-way bills on the government portal occurs when taxpayers fail to file their GST returns for two consecutive tax periods. This restriction can disrupt business operations and hinder the movement of goods. Understanding the process of e-way bill blocking, its implications, and how to unblock e way bill generation is crucial for compliance. This article provides detailed insights into the e way bill blocking and e way bill unblock methods to ensure seamless e-way bill management.

Brief on Blocking And Unblocking Of E Way Bill

The latest notification by CBIC states that the registration of an assessee that is registered under the Goods and Services Tax Act will be canceled if he fails to file the monthly or the quarterly returns for two months. It means that the GSTIN will be blocked, GSTIN will be a 15 digit unique identification number that is assigned to every individual that is registered under GST. An alert is sent to the user when he is trying to generate an e-way bill by the system if it is found that the user has not filed the returns for 2 consecutive months and the GSTIN is blocked.

The status of the GSTIN is auto-updated from blocked to unblocked in the e-way bill system when the users file GSTR 3B return in the GST Common Portal. This happens when GSTR 3B is filed in the GST common portal. In case the taxpayers did not file the GST returns for the last 2 successive months and click on the update button a message like this will be displayed. unblock e way bill message

If the status does not get auto-updated in the e-way bill system the taxpayer can also update the same by going to the e-way bill portal and then to the option Search Update Block Status. Once you have entered the GSTIN, the users can update their status by clicking on Update GSTIN from Common Portal. This is one of the procedures of e way bill unblock. In this way, the filing status from the GST Common Portal can be accessed and updated when the assessee files the returns.

Reasons for Blocking the e-Way Bill

In December 2019, the government introduced a pivotal update to the e-way bill system to enhance GST compliance. Under this regulation, the e-way bill generation facility is blocked for taxpayers who fail to file their GSTR-3B returns for two consecutive months or quarters. This step addressed the rising number of GST defaulters and encouraged timely return filing. For instance, if taxpayers do not file GSTR-3B for October and November 2022, their GSTIN will be blocked on the e-way bill portal starting in December. This restriction prevents the generation of e-way bills, halting the dispatch or receipt of goods, thereby disrupting business operations. The blockage is lifted automatically the day after the taxpayer files the pending returns, restoring compliance. The government's initiative underscores its commitment to tracking non-filers, fostering accountability, and maintaining the integrity of the GST system.

How e-Way bill will be blocked?

The e-way bill system is directly linked to the GST portal, ensuring seamless compliance monitoring. If a taxpayer fails to file their GSTR-3B returns for two consecutive months or quarters, the GST portal communicates this non-compliance to the e-way bill system. Consequently, the taxpayer’s GSTIN is blocked, restricting its use for generating e-way bills, whether as a consignor or consignee.

How to Unblock e Way Bill?

To resume e-way bill generation, taxpayers need to address the reasons behind the blockage. Here are the primary methods on how to unblock e way bill:

Method 1: Filing of GSTR-3B

The quickest way to unblock a GSTIN is to file the pending GSTR-3B for the defaulting period. Once filed, the GSTIN is automatically unblocked the following day. However, to expedite the process, taxpayers can follow these steps:

Log in to the e-way bill portal and select ‘Search Update Block Status.’
Enter the GSTIN, CAPTCHA code, and click ‘Go.’
Click ‘Update Unblock Status from GST Common Portal’ to refresh the status and enable e-way bill generation. If this process fails, taxpayers can seek assistance from the GST Help Desk.

Method 2: Unblocking by Jurisdictional Officer

Taxpayers can request their jurisdictional officer to unblock their GSTIN manually. This involves presenting a valid representation explaining the cause of non-compliance. While this feature is not yet operational, it remains an option for future consideration.

Method 3: Application in Form EWB-05

Taxpayers can file Form GST EWB-05 to request e way bill unblock of their GSTIN. The application must include a sufficient reason for non-filing of GSTR-3B, and authorities cannot reject it without providing an opportunity for the taxpayer to be heard.

Latest updates on GST E-way bill

5th October 2021 The CBIC has temporarily suspended blocking of the E-way bill generation facility for the taxpayers who are failing to file the basis of their returns monthly or quarterly due to the covid pandemic.

Relaxations by the government to the taxpayers in India

The blocking facility of the blocking e-way bill generation has been temporarily suspended due to pandemics, in terms of Rule 138 E (a) and (b) of the CGST rules, 2017, the e-way bill generation facility of the person is liable to be restricted. If the person fails to file the return in Form GSTR 3B/ statement in CMP 08 for a consecutive period of two months/quarters or more. After August 15, 2021 the system will check the status of returns filed in Form GSTR 3B or the statements filed in Form GSTR 3B or the statements that are filed in Form GST CMP 08 and restrict the generation of EWB if:

Non-filing of two or more returns in Form GSTR 3B for the months up to June 2021.
Non-filing of two or more statements in Form GST CMP 08 for the quarters up to April to June 2021.

To avail continuous EWB generation facility on EWB portal, it is advised to file the pending GSTR 3B returns/ CMP 08 statements immediately.

Back to Learn

Frequently Asked Questions

Common questions about Blocking & Unblocking of E Way Bill.

The e-way bill generation facility is blocked for taxpayers who fail to file their GSTR-3B returns for two consecutive months or quarters. This is done to enhance GST compliance and track non-filers. The taxpayer's GSTIN gets blocked on the e-way bill portal, preventing the generation of e-way bills and disrupting the movement of goods.

The quickest way to unblock your e-way bill is to file the pending GSTR-3B returns for the defaulting period. Once filed, your GSTIN will be automatically unblocked the following day. You can also log in to the e-way bill portal, update your unblock status from the GST Common Portal, and refresh your status to enable e-way bill generation.

If your e-way bill is blocked, you will be unable to generate e-way bills, which are mandatory for the movement of goods. This can severely disrupt your business operations, as you cannot dispatch or receive goods without an e-way bill. It is crucial to maintain compliance and file returns on time to avoid such disruptions.

Yes, you can request your jurisdictional officer to manually unblock your GSTIN. However, you will need to present a valid representation explaining the cause of non-compliance. This feature is not yet operational but may be considered in the future.

You can also file Form GST EWB-05 to request the unblocking of your GSTIN. In the application, you must provide a sufficient reason for not filing GSTR-3B, and the authorities cannot reject it without giving you an opportunity to be heard.

Yes, the government has temporarily suspended the blocking of the e-way bill generation facility for taxpayers who failed to file their monthly or quarterly returns due to the COVID-19 pandemic. This relaxation was announced on October 5, 2021, to provide relief to taxpayers during challenging times.

When you try to generate an e-way bill, the system will alert you if your GSTIN is blocked due to non-filing of GSTR-3B returns for two consecutive months or quarters. Additionally, you can check your block status on the e-way bill portal by selecting the "Search Update Block Status" option and entering your GSTIN.

The e-way bill blocking mechanism was introduced to address the rising number of GST defaulters and encourage timely return filing. By blocking the e-way bill generation facility, the government aims to foster accountability and maintain the integrity of the GST system, ensuring compliance and proper tax collection.

Once you file the pending GSTR-3B returns, your GSTIN will be automatically unblocked the following day. However, if the status does not update, you can manually refresh it on the e-way bill portal by updating your unblock status from the GST Common Portal.

Yes, even if your suppliers or customers have their e-way bills blocked due to non-compliance, you can still generate e-way bills for the movement of goods to or from them, as long as your GSTIN is not blocked.