Blocking of e-Way Bill (EWB) Generation Facility After 15th October 2020

The Goods and Services Tax Network (GSTN) has issued notices to taxpayers regarding the restriction of the E-Way Bill (EWB) generation facility after 15th October 2020. E-way bill generation facility would be restricted in case of taxpayers with turnover over Rs.5 crore fail to file their GSTR-3B returns, for a consecutive period of two months or more. The blocking of the E-Way Bill (EWB) generation facility is briefly explained in the present article.

Gist of Notification

Taxpayers who have defaulted in the filing of 2 or more GSTR 3B returns, Upto the tax period of August 2020, i.e. September 2020 return, are advised to file their returns immediately, as the E-Way Bill (EWB) generation facility for taxpayers, having Aggregate Annual Turn Over above Rs 5 Cr will be blocked after 15.10.2020, as per GST Council decision.

Blocking the e-way bills – Rule 138 E (b) of the CGST Rules, 2017

As per the Rule, 138 E (b) of the CGST Rules, 2017, the E Way Bill generation facility of a taxpayer is liable to be blocked, in case the person fails to file the GSTR-3B returns, for a consecutive period of two months or more. The system of e-way bill blocking was implemented from the 02.12 2019.

As per the rule, when a taxpayer fails to file GSTR-3B for two or more consecutive months on the GST portal, the same will be communicated to the e-way bill system and the Goods and Services Tax Identification Number will be blocked. The GSTIN of the blocked taxpayers cannot be used for generating e-way bills (EWB) either as Consignor or Consignee. It means the taxpayer will not be able to receive goods if the GSTIN gets blocked.

Applicability of EWB Blocking

As per the GST council announcement, this provision will be applicable for the taxpayers whose Aggregate Annual Turn Over is more than Rs 5 Crores.

If the GSTIN associated with the respective PAN with Aggregate Annual Turn over Rs 5 Crore has failed to file the GSTR-3B Return up to the month of the tax period of August 2020, their EWB generation facility will be blocked on the EWB portal.

With this notification, Government announced that the EWB generation facility for such GSTINs (whether as consignor or consignee or by transporter) will be blocked on EWB Portal after 15.10.2020.

Non-Applicability

E-Way Bill (EWB) generation facility will not be restricted for the following taxpayers:

• If the taxpayer is not registered on the EWB portal
• If the taxpayer has already filed the GSTR-3B Return for August 2020
• If the Aggregate Annual Turn Over (PAN-based) is below Rs 5 Crore

Procedure to Unblock the e-way bill

Filing of GSTR-3B

Once the defaulting taxpayer files GSTR-3B for the defaulting period, his/her GSTIN will get unblocked automatically by the next day. A taxpayer can also generate the e-way bill soon after filing his returns by following the steps below:

• Access the E-Way Bill portal and choose the option ‘Search Update Block Status
• Provide the details such as the GSTIN, CAPTCHA Code and click on ‘Go
• Click on the Update Unblock Status option from GST Common Portal’; this will reflect the recent filing status.

Note: In case this doesn’t work, a taxpayer can reach out to the GST Help Desk and get the query resolved.

The official notification pertaining to Blocking of e-Way Bill (EWB) Generation Facility After 15th October 2020 is as follows: