E-way Bill Generation Blocking applicable to all Taxpayers after 1st Dec,2020

Last Updated On: Nov. 17, 2020, 9:13 p.m.
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E-WAY BILL GENERATION BLOCKING APPLICABLE TO ALL TAXPAYERS AFTER 1ST DECEMBER,2020

 

INTRODUCTION:

E-way Bill is an Electronic Waybill for the movement of goods to be generated on the e-way Bill Portal. A person who is registered under GST cannot transport their goods in a vehicle whose value exceeds Rs.50,000 Single invoice Bill/delivery note without an e-way bill is generated on the website ewaybillgst.gov.in

If the registered person wants to generate or cancel his E-way bill can do through SMS, Android app, and by integration through API.

Whenever an e-way bill is generated, a unique E-way Bill Number (EBN) is allotted to the registered and it is available to the supplier, recipient, and the transporter.

 

 

Notifications on Blocking of E-Way Bill (EWB) generation facility, after 1st December 2020

As per Rule 138E (a) and (b) of the CGST Rules, 2017, the E-Way Bill (EWB) generation facility of a taxpayer is liable to be restricted, in case the taxpayer fails to file their FORM GSTR-3B returns / Statement in FORM GST CMP-08, for tax periods of two or more.

2. From 1st December, 2020, onwards, the blocking of EWB generation facility would be made applicable to all the taxpayers (irrespective of their Aggregate Annual Turnover.

3. Thus, on 1st December 2020, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08, for the class of taxpayers to whom it applies, and restrict the generation of EWB in case of:

Non-filing of two or more returns in Form GSTR-3B for the months up to October, 2020; and

Non-filing of 02 or more statements in Form GST CMP-08 for the quarters up to July to September, 2020

4. This blocking will take place periodically from 1st December 2020 onwards.

5. To avail of continuous EWB generation facility on EWB Portal, you are therefore advised to file your pending GSTR 3B returns/GST CMP-08 statements immediately.

 

Who should generate the E-way Bill and why?

An E-way bill can be generated by either of the consignor or the consignee himself if the transportation is being done by road, railways, by air, by vessel.

In case if the goods are handed over to the transporter for transporting the goods by road, then the E-way Bill is generated by the Transporter.

In case if the consignor nor consignee does not generate the e-way bill and if the value of goods exceeds Rs.50,000/-  then the responsibility of generating the E-way bill shall be on the transporter.

In case if the goods are sent by a principal located in one State to a job worker located in any other State, the e-way bill shall be generated by the principal irrespective of the value of the consignment.

In case if the handicraft goods are transported from one State to another by a person who has been exempted from the requirement of obtaining registration, the e-way bill shall be generated by the said person irrespective of the value of the consignment.

 

Who should Generate an eWay Bill?

  • Registered Person – E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a registered person. A Registered person or the transporter may choose to generate and carry an e-way bill even if the value of goods is less than Rs 50,000.
  • Unregistered Persons – Unregistered persons are also required to generate an e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier. 
  • Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate an e-Way Bill if the supplier has not generated an e-Way Bill.

 

FAQ’s on Blocking and Unblocking of E-Way Bill generation facility in GST

 

1. What is the unblocking of the E-waybill (EWB) generation facility?

Ans: Unblocking of e-waybill generation facility means restoring the facility of generation of E Way Bill, in respect of such taxpayers GSTIN (as Consignor or Consignee), in the event of filing of the return for the default period(s), thereby reducing the default period to less than 2 consecutive tax periods.

Also, the Unblocking can be done by the jurisdictional officer online on the GST Portal, upon considering the manual representation received from such taxpayer.

 

2. Form when blocking/unblocking of EWB generation facility is being implemented on EWB Portal?

Ans: Blocking of EWB generation is implemented from 1st December 2019. Thus the users won’t be able to generate EWB for a GSTIN (whether as consignor or consignee), if the said GSTIN is not eligible for EWB generation as per Rule 138 E of CGST/SGST Rules, 2017.

 

3. What type of Returns not filed are considered for blocking/unblocking of EWB generation facility?

Ans: Form GSTR-3B (to be filed by normal taxpayers) is considered for blocking of EWB generation facility.

 

4. When blocking of EWB generation facility at EWB Portal will be implemented for non-filing of GSTR 3B return?

Ans: 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 return for two consecutive tax periods.

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

 

5.Whether recipient can generate E Way Bill of blocked GSTINs, indicating them as a supplier and vice versa?

Ans: No, if a Taxpayer GSTIN has blocked for E Way Bill Generation facility, that GSTIN cannot be entered in E Way Bill either as supplier or recipient. Thus recipients of such blocked GSTINs cannot generate E Way Bill indicating such blocked GSTIN as a supplier.

 

6. Can the transporter generate the e-way bill in respect of Blocked GSTIN, either as a supplier or as a recipient?

Ans: No, the transporter cannot generate the e-way bills in respect of such blocked taxpayer’s GSTINs, as supplier or as recipient.

 

7. How does blocking take place in the e-waybill system?

Ans: The GST System and EWB System are integrated and accordingly GSTIN’s of the taxpayers who have not filed GSTR 3B return, for two or more consecutive period, will be blocked for EWB generation.

 

8. How does unblocking take place in an e-waybill system?

Ans: In case of filing of GSTR 3B returns by taxpayers, resulting in a reduction of their return filing default period of less than two tax periods, their return filing status will be updated on E Way Bill Portal, and their GSTIN will be unblocked for E Way Bill generation facility, next day.

The Unblocking can be done by the jurisdictional officer online on the GST Portal, upon considering the manual representation received from such taxpayer.

 

9. How much time does it take to update the status on E-Way Bill Portal, for a generation of E- Way Bill, after the return is filed on GST Portal?

Ans: Once the Return is filed on GST Portal, the blocking status is removed by the system, the next day.

 

 

10. Why does GSTIN gets blocked for the E-Way Bill generation facility?

Answer: Your GSTIN will be blocked for the E-Way Bill generation facility, in case, you have failed to file Form GSTR-3B return for the last two or more consecutive tax periods.

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