Blocking of e-Way Bill (EWB) Generation Facility after 1st December 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 1st December 2020. E-way bill generation facility would be restricted in case of taxpayers (irrespective of their Aggregate Annual Turnover (AATO)/ fail to file their GSTR-3B returns/ Statement in FORM GST CMP-08, for a consecutive period of two months or more. The blocking of the E-Way Bill (EWB) generation facility is briefly explained in the current article.

Gist of Notification

Taxpayers who have defaulted in the filing of 2 or more GSTR 3B returns/ Statement in FORM GST CMP-08, Upto the tax period are advised to file their returns immediately, as the E-Way Bill (EWB) generation facility for all taxpayers irrespective of their Aggregate Annual Turnover (AATO), will be blocked after 01.12.2020, as per GST Council decision

• This blocking will take place periodically from 01.12.2020 onwards.
• To avail of continuous EWB generation facility on EWB Portal, taxpayers are advised to file the pending GSTR 3B returns/GST CMP-08 statements immediately.

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

As per 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/ Statement in FORM GST CMP-08, for a consecutive period of two months or more. The system of e-way bill EB) blocking was implemented from the 02.12 2019.

As per the rule, when a taxpayer fails to file GSTR-3B/ Statement in FORM GST CMP-08 for two or more consecutive months on the Goods and Service Tax portal, the same will be communicated to the e-way bill system and the Goods and Services Tax Identification Number (GSTIN) will be blocked. The GSTIN of the blocked taxpayers cannot be used for generating e-way bills 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 all the taxpayers irrespective of their Aggregate Annual Turnover (AATO)

If the GSTIN associated with the respective PAN has failed to file the GSTR-3B/ Statement in FORM GST CMP-08 Return for a consecutive period of two/more months, their EWB generation facility will be blocked on the EWB portal.

• Non-filing of two or more returns in Form GSTR-3B for the months up to October 2020
• Non-filing of 02 or more statements in Form GST CMP-08 for the quarters up to July to September 2020

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 01.12.2020.

Non-Applicability

E-Way Bill (EWB) generation facility will not be blocked 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 October 2020
• If the taxpayer has already filed statements in Form GST CMP-08 for the quarters up to July to September 2020

Unblocking the e-way bill Generation Facility

The GSTIN will be blocked for the E-Way Bill generation facility, in case, the taxpayer has failed to file Form GSTR-3B return for the last two or more consecutive tax periods. The E-Way Bill generation facility will be automatically unblocked on the EWB Portal when the taxpayer files the GSTR-3B Return and the default in Return filing reduce to less than two tax periods. A taxpayer can also file an offline/ manual request for unblocking of the E-Way Bill generation facility with the jurisdictional tax officer.

A taxpayer can apply for unblocking of an E-Way Bill generation facility through an offline/ manual request, citing the grounds why the facility should be un-blocked along with the required documents to the Jurisdictional Tax Official.

Once the request is received, the Tax official will dispose of the application through Back Office GST Portal and issue an order online.

In case, the order for rejection/acceptance of the unblocking request made by the taxpayer is issued, an Email and SMS of acceptance/ rejection of order will be sent to the taxpayer on the registered email id and mobile number. Such orders can be seen by the taxpayer after login into the GST Portal.

After login to the portal, click on the Services option and then select the user services and then click View Additional Notices/Orders to view Acceptance/Rejection Order for unblocking of the E-Way Bill generation facility.

Note: Intimation of acceptance/ rejection order will be sent to the taxpayer on the registered email id and mobile number.

Generate E-way Bill

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.

Once the return is filed on GST Portal, the blocking status is removed by the system, next day

Please click here to know more about the official notification on Blocking of e-Way Bill (EWB) Generation Facility After 1st December.