To crack down GST non-filers and evaders, government has introduced blocking of e-way bill generation facility. In our earlier article, we have discussed about e-way bill under GST regime, validity and consolidation of the e-way bill. In this post, we are discussing blocking and unblocking of e-way bill generation facility.
As per GST law, every registered person must file GSTR-3B every month by paying the final tax liability after claiming eligible input tax credit. Blocking of e-way bill generation facility means disabling taxpayer from generating E-Way Bill.
As per GST law, in case of non-filing of 2 or more consecutive GSTR-3B Return on GST Portal, by taxpayer the generation of e-way bill facility will be blocked Refer Rule 138E of CGST/SGST Rules, 2017).
This means, if you have not filed GSTR-3B for the month of January and February, then e-way bill generation facility will be blocked from March month onwards. The GSTINs of such blocked taxpayers cannot be used to generate the e-way bills either as Consignor or Consignee.
By filing GSTR-3B for the defaulted period, the registered person can unblock e-way bill generation facility in common portal.
Please note, if it’s blocked for a user, then no one can generate e-way bill for that user.
Blocking of E-Way Bill generation is implemented with effect from 1st December, 2019. Due to this, users won’t be able to generate EWB for a GSTIN (whether as consigner or consignee), if the said GSTIN is not eligible for EWB generation as per Rule 138 E of CGST/SGST Rules, 2017.
To unblock means restoring the facility of generation of E Way Bill. If it’s blocked due to non-filing of return, then by filing the return for the default period, you can unblock it. Blocking status is removed by the system next day after you file the return.
If you want to generate e-way bill soon after filing GSTR-3B for the defaulted period, then you can visit the e-way bill portal and choose the option ‘search update block status’. You are required to enter your GSTIN and click on GO tab. If the status is blocked, then click on update unblock status from GST common portal. By clicking on this tab, system will update the e-way bill status to ‘unblocked’. Please note, it will be updated only when you have filed GSTR-3B for the defaulted period.
To avoid such difficulties, we suggest you to file your GSTR-3B in time on or before the due date of filing.
Here is the link to know block and unblock status of GSTIN.
Here are certain clarifications of blocking and unblocking of e-way bill;
- If e-way bill has already generated before blocking of the GSTIN, then they are still valid and can be used for movement of goods.
- Vehicle and transport details can be updated for existing e-way bill which are already generated before blocking of the GSTIN. If the e-way bill is valid and verification is not done, then system will allow you to update vehicle and transport details. New e-way bill will not be allowed so do not cancel existing one, just update it with correct vehicle and transport details.
- If a transporter is not registered on the GST portal but are enrolled on the e-way bill portal, then they will not have any impact. But such transporter cannot generate e-way bill for a blocked registered tax payer.
- If the transporter is registered and not blocked then such transporter cannot generate e-way bill for another blocked supplier or recipient, which is generally allowed to the transporter for normal unblocked supplier or recipient.