GST Return filing Defaulters cannot Raise E-way bill

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An urgent reminder to GST taxpayers: start doing GST Return Filing immediately or face the risky hindrance in your business operations. The recent notification will have a significant impact on taxpayers because the E-Way Bill generation blocking facility is now in effect. In this article, we will understand about the government’s most recent update as Defaulters on GST Return Filing cannot raise e-way bills from now on.

What is the E-Way Bill?

E-waybill is an abbreviation for Electronic Way Bill. It is an electronic document generated on the GST portal permitting the movement of goods.

In other words, an E-Way bill is similar to a receipt as it also provides information on the shipping of a consignment as well as other details such as the name of the consignor (sender of goods), the consignee (receiver), the consignment’s origin and destination, and the route accessed.

Furthermore, the generation of E-Way bills is required for every interstate and intrastate movement of goods value of more than 50,000/-. As a result, most companies require the creation of E-Way bills in order to function correctly.

E-Way bills are vital to the government because they prevent tax evasion and assist the government in tracking the flow of goods.

To know more about E-Way Bills, you can read our detailed guide here- E-way Bill Guide

Know about Rule 138E: GST Return filing Defaulters cannot raise e-way bill

The GST Authority added a new rule 138E to the CGST Rules on December 13, 2018. It states the following –

  • Firstly, In case the GST return filing has not been done for the last 2 months by the regular dealer OR
  • Secondly, In case the GST return filing has not been done for the last 2 quarters by a taxpayer having GST Registration under the composition scheme.

Then the taxpayer or dealer won’t be able to generate the E-Way Bill. Consequently, you can generate e-way bills only after GST Return filing.

Understand the Rule 138E in detail – E-Way Bill Generation Blocked for Taxpayers not filing GST Return 

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E-Way Bill Generation Blocking Resumes Again

Many taxpayers experienced problems with the GST Return Filing procedure because of the intricacy of submitting GST Returns and the COVID-19 Pandemic.

To solve this issue, the government halted the blocking of the E-Way Bill (EWB) generation facility and established numerous relaxation plans, such as the Amnesty Scheme.

However, considering the opening up of lockdown and reduction in COVID-19 Cases, the Indian Government has again resumed the Blocking of E-Way Bill (EWB) generation facilities.

“The blocking of the e-way bill (EWB) generating facility for all taxpayers has now resumed on the E-Way Bill portal.” Going forward, beginning with the tax period ending in August 2021, the system would examine the status of returns filed in form GSTR-3B or statements filed in form GST CMP-08 as per the usual method used prior to the pandemic, and prevent the creation of EWBs as per rule,” GSTN stated.

Form 3B is for assesses who must file monthly returns, while Form CMP-08 is for small enterprises that must file quarterly returns. Learn More about GSTR-3B at – GSTR 3b Return Filing- What is GSTR 3b? and How to file? 

“You are thus encouraged to file your outstanding GSTR 3B returns/CMP-08 statement on a regular basis in order to use EWB generating facility on EWB portal on a continual basis,” GSTN added. Also, The customer would have difficulty collecting input tax credits for the taxes paid when purchasing the goods so GST Return Filing must be done accordingly.

GST Department may target Unregistered Businesses

Moreover, If you want any other guidance relating to GST Return Filing or GST Registration, please feel free to talk to our business advisors at 8881-069-069.

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