Non-filing of GST returns restricting independence of taxpayers

Arjuna (Fictional Character): Krishna, what advisory has been issued by CBIC regarding blocking of e-way bill generation facility which was temporarily suspended due to COVID-19 pandemic?

Krishna (Fictional Character): Arjuna, as you might be aware that the facility of blocking E-way bill generation was temporarily suspended due to the COVID-19 pandemic, the CBIC has decided again to resume the blocking of the EWB generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, from 15th August 2021 onwards. Thus, after 15th August 2021, the System will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08 and restrict the generation of EWB in case of 1. Non-filing of two or more returns means in Form GSTR-3B for the months up to June 2021 or 2. Non-filing of 02 or more statements in Form GST CMP-08 for the quarters up to June 2021. Also, during such period, you or any other user, including a Transporter, will not be able to generate an e-way bill against your GSTIN, either as consignor or consignee.

Arjuna (Fictional Character): Krishna, whether any penalty is imposed if the taxpayer fails to pay the tax to the Government?

Krishna (Fictional Character): Arjuna, as per section 122 (1)(iii) if the taxpayer collects any amount as tax but fails to pay the same to the Government beyond a period of three months from the date on which such payment becomes due, he shall be liable to pay a penalty higher of ten thousand rupees or an amount equivalent to the tax evaded or short collected or collected but not paid to the Government.

Arjuna (Fictional Character): Krishna, whether registration will get canceled if the taxpayer fails to file the return?

Krishna (Fictional Character): Arjuna, as per section 22(2)(c) the proper officer may cancel the registration of a person where any registered person has not furnished returns for a continuous period of six months.

Arjuna (Fictional Character): Krishna, what care must be taken by the taxpayer in this regard?

Krishna (Fictional Character): Arjuna, the taxpayer should ensure that all the returns are filed on or before the 15^th of August in order to avail continuous EWB generation facility on EWB Portal and to avoid Suo-moto registration cancellation. you are therefore advised to file your pending GSTR 3B returns/ CMP-08 Statement immediately.