Blocking and Unblocking of E-Way Bill Generation Facility

The E-Way bill generation facility is blocked on the government portal if you do not file your GST returns consecutively for two tax periods. You can unblock this facility by filing your returns on the GST Common Portal. 

 

This unique system of blocking and unblocking E-Way bill generation has been implemented in India to curb tax evasion. Another aspect to it is that timely filing of GST returns also increases tax revenue collection in the country.

When you fail to file GSTR-3B returns for two or more months, your Goods and Services Tax Identification Number (GSTIN) gets blocked. The government introduced this significant change in 2019 on the E-Way bill portal. 

 

It implemented this on December 2, 2019, as the number of tax defaulters was consistently increasing in the country. A blocked GSTIN hampers the ability to generate E-Way bills. Once you file your GSTR-3B returns, the E-Way bill facility is unblocked within a day. 

 

Consider the following illustration to understand the process of E-Way bill blocking. Say you forgot to file your GSTR-3B for 2 months, i.e., January and February 2024. In such a scenario, your GSTIN is blocked on the E-Way bill portal from March 2024.

 

This initiative helps the government keep a close watch on non-filers of GST returns and make them tax compliant.

When you fail to file your GST returns on the portal, this gets recorded on the E-Way bill system and your GSTIN gets blocked. Here is a quick snapshot of essential facts of what happens when your E-Way bill facility is impeded.

• You cannot generate E-Way bills as a transporter, consignee, or consignor

• You cannot dispatch or receive goods without submitting an E-Way bill

• You need to pay fines or penalties

• Your goods may get seized or detained

 

Once your GSTIN is blocked, you get a pop-up message when trying to generate a new E-Way bill, or opting for bulk generation. The system also sends constant reminders and alerts, allowing you to update the status manually if needed.

Upon filing your GSTR-3B in the GST Common portal, the block status gets updated as ‘Unblock’ in one day. If this does not happen automatically, you can initiate the manual process. Follow the steps mentioned here:

1. Visit the official E-Way Bill Portal at https://ewaybillgst.gov.in/

2. Hover around the ‘Search’ tab

3. Click on ‘Update Block Status’

4. Enter your GSTIN details

5. Provide the Captcha code and click on ‘Go’

A Jurisdictional Officer also holds the authority to unblock GSTIN online. This is based on the manual representation that you submit. You can cite the reason, along with supporting documents, as to why your GSTIN needs to be unblocked.

 

Once you submit the application, the concerned tax official issues a Personal Hearing Notice. You can reply to this notice and attach the required documents. After receiving the Order of Acceptance, the facility to generate an E-Way bill against a specific GSTIN is unblocked. 

 

In case your application gets rejected, the facility remains blocked, and you cannot generate E-Way bills.

The new blocking facility disables the taxpayer from generating E-Way bills. Whether you are a consignee or consignor, your GSTIN cannot be used to produce bills as you are a blocked taxpayer. 

 

Likewise, even a transporter cannot generate E-Way bills as a supplier or recipient using the GSTINs of blocked taxpayers. Remember, there is no impact on E-Way bills that have already been generated. 

 

This simply means if your GSTIN is blocked after an E-Way bill has been generated, there will be no impact on the movement of your goods. Your goods will reach their specific destination. 

 

The impact differs in the case of transporters as there are two types:

• Those without GSTIN and enrolled on the E-Way bill portal

• Those with GSTIN and registered at the GST portal

 

If a transporter has not registered at the GST portal, there is no impact as they need not file GSTR 3B returns. If the GSTIN of the registered transporter is blocked, the consigner or consignee cannot use it while generating E-Way bills.

When you want to generate E-Way bills right after filing your GST returns, you can easily initiate this process on the GST Common Portal. Follow the steps mentioned here:

1. Visit the GST Common Portal at https://www.gst.gov.in/

2. Select the ‘Services’ tab and click on ‘E-Way Bill System

3. Choose the option ‘Click here to go to E-Way Bill Portal’ once you are redirected to a new page

4. Select the ‘Update Block Status’ under the ‘Search’ tab

 

You can view your GSTIN and blocked status once you enter the required information. After this, simply click on the tab ‘Update Unlock Status from GST Common Portal.’ Once you give this instruction, the status from the GST Common Portal is updated if you have filed successfully your returns.