Blocking and Unblocking of E-Way Bills – Question & Answer
What do you mean by blocking and unblocking of the E-way bill?
Blocking of e-waybill generation means that a tax payer can’t generate e-waybills if he has committed certain mistake. The taxpayer who gets his / her GSTIN blocked, can’t use their GSTIN to generate the e-way bills either as Consignor or Consignee.
Whereas, Unblocking means allowing the taxpayer, whose GSTIN got blocked for generating e-way bills after rectifying the mistake.
Now, you must be thinking what’s the mistake due to which your E-way bill gets blocked?
CBIC issued Circular on Standard Operating Procedure to be followed in case of non-filers of returns
When will your E-way bill gets blocked?
Here is the reason or the mistake committed by taxpayer which results in blocking of generation of e-way bills:-
- In case of regular tax payers, e-way bills get blocked if he /she have not filed GST Return for last two successive months.
- In case of composite tax payers, e-way bills get blocked if he /she have not filed GST Return for last two quarters.
Now, the question which might come in your mind is because there are 2 different portals for the same “How the E-way bill system will know that whether a taxpayer has filed the GST returns or not?”
How communication does takes place in the e-waybill system and GST Portal?
The E-way Bill system is connected with GST Common Portal which provides the details of the taxpayers who’s defaulted in filing the latest two successive monthly or quarterly returns.
Now, will the taxpayer always be blocked from generating e-way bill or if they will get unblocked then how and what they have to do?
What taxpayer needs to do for getting unblocked?
In case the tax payer gets blocked then he has to file the return of the GST. Then next day, after getting information from the GST Portal, his GSTIN gets unblocked on the e-way Bill system. It allows him/her to generate the e-way bills.
Now, is it necessary for the taxpayer to wait for a day to get unblocked even in the case of urgency?
And what if even after filing returns people are unable to generate the bills!!
What should you do, you have been blocked from e-waybill generation even after filing returns?
If you want to generate the e-way bills immediately after filing the Return, then Update Block Status and then go to the e-way bill portal. Follow the steps:
- Select the option ‘Search’ and then select Tax Payer. Enter your GSTIN and see the status.
- If it is blocked, use the update option to get the latest GST Return filing status from the Common Portal and get it unblocked.
- Despite of the above actions, if the system does not unblock the GSTIN for the generation of e-way bills, one may contact to the GST Help Desk and raise the complaint to solve the problem.
Have you thought about what happened to those e-way bills which were generated before this rule rolled out.
What happens to the e-way bills which were generated before the rule rolled out and their GSTIN got blocked afterwards?
Here, there is a bit relief that this rule won’t have any impact on the e-way bills which were already generated and their GSTINs got blocked later.
In other words, such e-way bills, are valid and can be easily moved to the destination. And any transporter / tax payer, including blocked GSTINs, can update the vehicle and transporter information for these e-way bills and, if required, carry out the extension as per the law.
In addition, existing e-way bills can be modified with vehicle and transporter details and extended by the authorized stakeholder (tax payer / transporter) as per law, if required.
What if transporter id gets blocked?
Till now we were talking from the perspective of consignor/ consignee but what about transporter.
Even in the case of transporter the e-way bill system will also block the updating of Transporter Id, provided he is registered in GST and has not filed the Returns for latest two successive period.
Which GST returns if not filed, will lead to blocking of E-Way Bill generation facility on E-Way Bill Portal?
Non-filing of Return 3B will lead to blocking of E-way bill generation facility on E-way Bill Portal.
After reading all about blocking and unblocking of generation of e-way bills. Let’s see why government brought this rule.
What’s the intention behind blocking e-way bill and impact of blocking on the taxpayers?
There are lot of taxpayers who take the benefit of liberty provided by the government and take advantage of the same. They were doing their business by generating the bills but were careless in terms of filing the returns and paying tax for the same. Considering the rise in the number of tax defaulters, their ability to generate e-way bill was blocked. This will interrupt their businesses and they will start filing the returns on time. The non-filing of returns is also considered as the primary reason for the decline in the GST revenue collection.
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The author of above article is Sneha Bhalotia.