The CBIC has introduced an important change with the e-way bill generation system to crack down on GST non-filers and evaders. The advisory came into effect from 2nd December 2019 as the blocking and unblocking of the e-way bill generation facility has been implemented on the e-way bill portal. Now the e-way bill generation would be barred for taxpayers who haven’t filed their returns or not paid taxes for the previous two consecutive months.
- What does it mean by blocking and unblocking of E-waybill generation?
In simple terms, blocking of e-waybill generation means to not allow the taxpayer to generate an e-way bill if the taxpayers have not filed GSTR-3B at least for the latest two successive months or quarters accordingly. Or it can be said that the blocked GSTIN is not allowed to generate the e-way bills whether as a consignor or as a consignee.
In the same way, unblocking of e-way bill generation means allowing the taxpayers to generate the e-way bills after the filing of the Return.
- How the blocking of GSTIN take place in the e-way bill system?
GSTIN would be blocked to use the e-way bill generation facility, in case, the taxpayers failed to file Form GSTR-3B for the last two or more consecutive tax periods. They have to file an offline request to unblock the e-way bill generation facility with the jurisdictional tax officer.
- How to apply for unblocking of E-Way Bill generation facility?
Users can request manually to unblock an E-Way Bill generation facility while citing the grounds why the e-way bill generation facility should be unblocked attached with the required documents to their Jurisdictional Tax Official. Once you made the request and it is received then the tax official will dispose of your application through Back Office GST Portal and issue order online to reuse the facility.
- How to check the status of the order on my application for Unblocking of E-way Bill generation facility?
In case if you want to check the order on your application for rejection/acceptance of the unblocking request, then you may receive it by email or SMS of acceptance/ rejection of order on your registered email id and mobile number. And later, the status of such orders can be checked by the taxpayer after login to the GST Portal.
- What steps are followed to check the acceptance/rejection order for unblocking of the E-Way Bill generation facility?
Steps to check the acceptance/rejection order for unblocking of the E-Way Bill generation:
- First, navigate to Dashboard
- Click Services and then User Services
- View Additional Notices and then check Orders to view Acceptance/Rejection Order to unblock the E-Way Bill generation facility.
Along with that, Users would be notified with the intimation of acceptance/ rejection order on their registered email id and mobile number.
- How would users come to know if their E-Way Bill generation facility has been blocked?
Taxpayers whose E-Way Bill generation facility has been blocked would receive SMS/ Email at their registered mobile number/ email id by the GST portal. Along with that, users would not be able to generate E Way Bill whether as a consignor or as a consignee against the blocked GSTIN.
- What would happen to the already generated e-way bills for the blocked GSTINs, which are already active and in transit?
Blocking of GSTIN would not affect or there would not be any impact on the already generated e-way bills. These e-way bills would work the same, are valid and can be moved to the preferred destination without any problem. Even the e-way bills can be updated with the vehicle and transporter details by any of the transporters/taxpayers including blocked GSTIN.
- Would taxpayers receive any reminder or notice before the expiry of the validity period as indicated in the unblocking order?
Yes, Taxpayers and users would receive reminders, emails, and SMS before the expiry of the validity period by the GST portal as it is indicated in unblocking order and for the filing of returns within time so that the unblocking of E-Way Bill generation can be avoided. Generally, the notification mail or SMS would be sent 7 days before the date of expiry.
- What to do when an unblocked E-Way Bill generation facility has been blocked again?
Users may face this automatic blocking of e way generation system if the validity period given by the tax Official has expired and the taxpayers are failed to file GSTR-3B return for the last two or more consecutive tax periods.
- Can the E-Way Bill generation facility be blocked before the expiry of the validity period?
No, the E-Way Bill generation facility cannot be blocked before the expiry of the validity period. However, taxpayers have to face blocking of E-Way Bill System automatically with the expiry of the validity period. The automatic blocking would be made if the extended period as per given by Tax Official is expired and the taxpayer is failed to file Form GSTR-3B return for the last two or more consecutive tax periods.
Blocking of the e-way bill or not possessing an e-way bill during transportation of goods can disrupt the day-to-day business operations and transportation works of businesses. This action can push taxpayers to be more aware, compliant and make sure they file their returns or make their tax payments on the nick of time. Now businesses and entrepreneurs need to be more careful about GSTR-3B filing returns within the deadline which would not disrupt their business-related operations. Along with that, this move will bring more efficiency in the GST tax collection system also.