It is the duty of every registered person to comply with proper law, provisions & rules, which ensures proper and smooth implementation of GST. It is important to ensure whether goods are being transported as per GST Law and for safeguarding the same, provisions of “E-Way Bill” comes into light. It is a proper mechanism and effective tool to track movement of goods from the source to destination. Proper functioning of this mechanism also keeps tax evasion in check. A registered person can generate e-way bill for the movement of goods through ewaybillgst.gov.in. Portal.

E-Way Bill system & GST portal are complementary to each other i.e., it has been designed with a matching concept. If a registered person filed their GST return without matching e-way bill generated invoice, then error will be arise and the same will be communicated to assessing officer. However, there is a loophole in this configuration as many registered persons are in default in filing their GST returns.

To limit the widening of this loophole, Govt. has launched the concept of blocking of E-Way Bill.

Circumstances for blocking of E-Way Bill –

Meaning of Blocking – Blocking of E-Way Bill generation facility means disabling taxpayer from generating E-Way Bill, by such taxpayer. Also, The GSTINs of such blocked taxpayers cannot be used to generate E-Way Bill either as Consignor or Consignee.

Time of Blocking – As provided in Rule 138 E of CGST/SGST Rules 2017, blocking of EWB generation facility will be implemented on EWB Portal, when the taxpayer does not file GSTR 3B /GST CMP-08 statements return for two consecutive tax periods.

Thus, taxpayers who are required to file Form GSTR-3B /GST CMP-08 statements and have not filed it for the month of January and February, will be blocked from EWB generation facility form March onwards.

Unblocking of E-Way Bill– E-Way Bill generation facility gets unblocked automatically as soon as GSTR 3B is filed and the default becomes less than two consecutive tax periods.

Relaxation – For genuine taxpayer –

• In terms of Rule 138E (a) and (b) of the CGST Rules, 2017, if the E-Way Bill (EWB) generation facility of a taxpayer is blocked in case the taxpayer fails to file their returns in Form GSTR-3B or Statement in Form CMP-08, for two or more consecutive tax periods.
• Then the registered taxpayer for unblocking of this facility,  need to apply to jurisdictional Tax Official in Form GST EWB 05.
• A facility has now been provided to the taxpayers on the GST Portal, from 28th November 2020 onwards, to file an application online for unblocking of their EWB generation facility (in Form EWB-05), in case their EWB generation facility has been blocked on the EWB Portal.

How to file online application:

1. Login to the portal and navigate to Services> User services> My Applications.
2. Select application type as “Application for unblocking of E-Way Bill” and click New Application.
3. Submit application in Form EWB-05, with upload of up to 04 documents.

Conclusion

The main concept of introduction of E-Way Bill is to evade tax evasion. Government is on the way to ample its objective of launch of e-way bill. Recently, Govt. began to block generation of E-Way Bill if a registered person not complied condition as mentioned above & E-Way Bill is a mandatory document for movement of goods without which goods movement will not be considered as proper movement in respect of law.

In the same way in future the government may also combine GSTR-1 & E-Way Bill to match the actual turnover declared through E-Way Bill & GST return. So, its mandatory to all GST registered taxpayer to comply regular GST compliance i.e. filing of GST returns on time. So that they can do business & supply of goods without countering the law.

This content is meant for information only and should not be considered as an advice or legal  opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.

Posted by:

CA Tarun Kapoor

AKGVG & Associates