Blocking & Unblocking of E-Way bill Generation under GST

According to Goods and Service Act,2017 central government allow to generate E-Way bill on  E-Way bill portal self but there are various occasion found that mis utilizes  these facility by some taxpayer so now if any taxpayer does not  file GST return two successive month than block his E-Way  generation facility.

Statutory Provision

Rule 138 E- No person shall be allowed to furnish the information in the part A of FORM GST EWB 01 in respect of a registered person whether as a supplier or receipt who

(a) Being a person paying tax under composition scheme has not furnished the statement in FORM GST CMP-08 for two consecutive quarters

(b) Being a person other than a person specified in clause (a) has not furnished the returns for a consecutive period of two months.

The anti-evasion measure was originally scheduled to come into force in June 2019 through  no. Notification no 22/2019

The Central Board of Direct Taxes has clarified that E-Way Generation facility to be block for all taxpayer irrespective aggregate annual  turnover.

Any taxpayer who fail to file GSTR 3B for two successive months than E Way bill facility will block after December ,2020

After block E-Way bill facility taxpayer try to generate E-Way bill than error message will show.

UNBLOCKING OF E-WAY BILL

Unblocking means allowing the generation of E-Way bills for the GSTIN that was blocked earlier.

E-Way Bill generation facility would be automatically unblocked on the E-Way Bill Portal when the taxpayer files GST Return and the default in Return filing reduces to less than two tax periods.

UNBLOCKING WHEN TAXPAYER FILERS THE PENDING RETURN

In case, the blocked taxpayer has filed the Return on the GST Common Portal, the next day morning his GSTIN is unblocked on the E-way Bill system and allows him to generate the E-way bills.

If the taxpayer wants to generate the e-way bills immediately after filing the Return than he should check status of block /unblock.

Conclusion

Block of E -Way bill facility emerge due mis utilize of E-Way bill facility where taxpayer did not file GSTR3B but generate  E-Way bill. So  now any taxpayer who does not file GSTR 3B for two successive months  block his E Way bill facility.