The GST council in its last meeting had recommended making the provisions of section 138(E)(b) applicable for larger taxpayers.
Accordingly, The E-waybill facility will be blocked for taxpayers having aggregate annual turnover (AAT) of Rs. 5 Crores or more from 15th October 2020 if they have not filed their GSTR-3B returns for 2 successive tax periods. For example- if a taxpayer with AAT of Rs. 5 crores or more has not filed his GSTR-3B for the month of July and August 2020 then he will not be able to generate the E-waybill for dispatching the goods from all the registrations under his PAN. So his business activity will come to standstill. Even the consignee or transporter will not be able to generate the E-waybill for such defaulters.
Therefore, to ensure continuity of E-waybill generation for transporting the goods the taxpayers must file the GSTR-3B regularly. It may be noted that this restriction will not be there for taxpayers having AAT of up to Rs. 5 cr.
Unblocking of E-waybill generation
Once the Return-3B is filed in the GST Common Portal, the blocked GSTIN will get automatically updated as ‘Unblocked’ within a day in the e-Waybill system and the taxpayer can continue with e-way bill generation.
However, if the status is not updated in the e-waybill system, then the taxpayer can do it immediately by going to the e-Waybill portal and clicking on the option Search-> Update Block Status. Enter the GSTIN, followed by the CAPTCHA, and click on GO.
This is a welcome step because it will ensure the availability of ITC for the recipients at least from larger taxpayers.
For your ready reference, detailed FAQs released by GSTN are reproduced below-
Blocking and Unblocking of EWB generation facility in EWB Portal
Frequently Asked Questions
1. What is the blocking of the E-waybill (EWB) generation facility?
Ans: Blocking of e-waybill generation facility means disabling taxpayers from generating E WayBill, in case of non-filing of 2 or more consecutive GSTR 3B Return on the GST Portal, by such taxpayer (refer to Rule 138E of CGST/SGST Rules, 2017). The GSTINs of such blocked taxpayers cannot be used to generate the e-way bills either as Consignor or Consignee.
2. 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 EWay 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.
3. Form when blocking/unblocking of the 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.
4. 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.
5. When blocking of the 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 the 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 form March onwards.
6. Whether the recipient can generate E Way Bill of blocked GSTINs, indicating them as a supplier and vice versa?
Ans: No, if a Taxpayer's GSTIN has been 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.
7. Can the transporter generate an 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 a supplier or as a recipient.
8. 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 periods, will be blocked for EWB generation.
9. How does unblocking take place in the 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.
10. How much time does it take to update the status on E-Way Bill Portal, for the generation of an 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,next day.
11. In spite of filing the latest Returns, I have been blocked from e-waybill generation. What can I do?
Ans: If the taxpayer wants to generate the e-way bills immediately, after filing the GSTR 3B Returns (on GST Portal), then they can login to the e-way bill portal and select the option ‘Search Update Block Status‘ and then enter his/her GSTIN and see the status. If the GSTIN is still shown as blocked, then they can use the update option to get the latest filing status from the GST Common Portal. If their return filing default period is less than two, their return filing status will be communicated by GST System to E Way Bill Portal, and such blocked taxpayers GSTIN will be unblocked and their E Way Bill generation facility will be restored on EWB Portal. Taxpayers may contact the GST helpdesk and raise a grievance if the issue is not resolved.
12. What happens to the already generated e-way bills, on which goods are in transit (ie EWB generated earlier pertaining to the blocked GSTINs)?
Ans: There will not be any effect/impact on the already generated e-way bills, of the blocked GTINs. These e-way bills are valid and can be used to move goods to the destination.
13. Can one update the vehicle and transporter details and extend the validity of e-way bills, if required, for the e-way bills belonging to the blocked GSTINs?
Ans: The transporters/taxpayers can update the vehicle and transporter details and carry out the extension in the validity period of these e-way bills if required.
14. What is the effect of blocking/unblocking on the transporters?
Ans: There are two types of transporters – the Transporters who have only enrolled
themselves on the E Way Bill portal (ie who don’t have GSTIN) and the Transporters who are also registered at the GST portal (i.e. who have GSTIN). Transporters enrolled in EWB Portal and who are not registered on the GST portal, will not be impacted (as they are not required to file GSTR 3B returns). If the GSTIN of the GST registered transporter is blocked, then that GSTIN cannot be used as Consignor, Consignee or transporter, while generating an e-way bill and updating transporter details.
15. Will the e-way bill system block the updating of Transporter Id if registered in GST & filing GSTR 3B return if transporter GSTIN is blocked for EWB generation facility?
Ans: Yes, the e-way bill system will block the updating of Transporter Id, if registered in GST and has not filed the GSTR 3B Return for the last two successive tax periods.
However, there will not be any problem in updating details of the enrolled transporter id (i.e. who don’t have GSTIN), while generating the e-way bills.
Disclaimer: The views in this article are personal of the writer and must not be construed as advice.
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