E-way bill to be blocked if monthly returns not filed for 2 months

E-way bill to be blocked if monthly returns not filed for 2 months

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27 Nov 2020

An E-way bill is a document issued by the carrier containing details to the shipment of a consignment of goods. It is an important document that is required to move goods from one place to another in a vehicle, the transporter needs to be a GST registered individual. The bill is generated online on the e-way bill portal, it can also be generated through SMS or an Android App. Once the e-way bill is generated, a unique eway bill number (EBN) gets created and allotted, this number is made available to the taxpayer, supplier, recipient, and the transporter.  Goods worth more than Rs. 50,000 (Single/Invoice/bill/delivery challan) cannot be transported without an e-way bill that is generated on the portal.

Effect of the Pandemic

The anti-evasion measures faced disruptions due to the pandemic but now the government intends to resume the implementation of compliances. GST taxpayers that have a turnover of above Rs. 5 crores will not be able to generate e-way bill henceforth if they have not filed for returns for two or more months (GSTR-3B). Earlier the rule was applicable to all taxpayers, now the rule has been modified and is applicable only to taxpayers that have a turnover above Rs 5 crores and have not filed their returns.

The GSTR-3B compliance has been lower than expected percentage, hovering around 70% of the eligible taxpayers till due date for each month. However, due to the pandemic, resulted in a further drop in the first quarter of the year with April, May and June clocking 69%, 57% and 15% respectively till July 16. It is to be noted that the deadline for the following months had been extended till 30th September.

Lack of compliance is a major problem for the tax department to match invoices between buyers and the sellers preventing frauds and fake invoices. The government has stated that the central GST authorities have detected tax-evasion of Rs 70,206 crore between July 2017 and January 2020. However, the tax department managed to recover nearly half of this amount that is Rs 34,591 crore.


E way Bill Blocked

As per the rule, when a GST taxpayer has not filed the GSTR-3B for two or more consecutive months, the same gets reflected on the eway bill system and the GSTIN gets blocked right away. With a blocked GSTIN the taxpayers will not be able to generate eway bill, it means the taxpayer will not be able to move or receive the goods with a blocked GSTIN. You can check the status of your GSTIN on the online e way bill portal. When the e way bill gets blocked, there are two situations the taxpayers can come across:

  1. The taxpayer will receive a pop-up notification for every single attempt of generating a new eway bill for a bulk generation.
  2. If any taxpayer/transporter enters the blocked GSTIN as another party to generate an eway bill, a similar message will appear.


E way Bill Unblock

Once GSTR-3B is filed for the defaulting period, the taxpayer’s GSTIN gets unblocked and the taxpayer can soon generate the eway bill after filing his returns by following the steps below :

Step 1:

Visit the e way bill portal and select the ‘Search Update Block Status’ option.

Step 2:

Enter the GSTIN, captcha code and click on ‘Go’.

Step 3:

Click on ‘Update Unblock Status, this will reflect the recent eway bill filing status.

Step 4:

If you face any errors you can reach out to the GST Help Desk and get the query resolved.

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Updation of Eway bill Unblock Status From GST Common Portal

Eway bills that were previously generated and valid can be updated by the authorised taxpayer with the help of vehicle and the transporter details. If the taxpayer wants to generate an eway bill immediately after filing the returns, he can do it through the GST Portal

Step 1:

Visit the e way bill portal and click on the ‘Search Update Block Status option.

Step 2:

Enter the GSTIN and check the Eway bill status.

Step 3:

If the eway bill is displayed as blocked, then he/she can select the update option to get the latest filing status online from the GST Common Portal and unblock the eway bill.

The government’s decision of executing e-way bill blocking will help check tax evasion and boost timely compliances. Moreover, for genuine cases that include non-filing and technical glitches, if any, the law provides for an alternate avenue of obtaining an exception approval from the commissioner in charge; this will help ensure no unwarranted disruption is being caused to the businesses. Finserv MARKETS understands the financial requirements of a business. By getting a Bajaj Finserv business loan at Finserv MARKETS  you can get the financial assistance your business needs. You can avail a loan amount of up to Rs. 30 lakhs at attractive interest rates. The online application process is very simple with minimal documentation. On approval of your loan, the funds get disbursed within 24 hours.

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