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Managing E-Way Bill Status under GST: Blocking and Unblocking Procedures

This article details the process of blocking and unblocking e-way bills under GST in India. It explains that e-way bills are blocked for taxpayers who consistently fail to file GSTR-3B returns for two or more periods, leading to disruptions in goods movement. The guide outlines the steps for unblocking, primarily through filing pending returns or applying via EWB-05, and highlights the severe consequences of operating with a blocked e-way bill facility.

📖 3 min read read🏷️ E-Way Bill

E-way bills can be blocked on the government's online portal if taxpayers fail to submit their Goods and Services Tax (GST) returns for two consecutive tax periods. This article explains how this blocking occurs and the steps required to unblock the e-way bill generation facility.

Understanding E-Way Bill Blocking and Its Causes

In 2019, the government introduced a significant change to the e-way bill system. It began blocking the generation of e-way bills for taxpayers who had not filed their GST returns for the preceding two consecutive months or quarters. This blocking mechanism was implemented on December 2, 2019, as a response to a notable increase in tax defaulters. The measure was deemed essential to improve compliance. Consequently, if a taxpayer fails to file their GSTR-3B for two or more continuous months, they will be unable to generate e-way bills for sending or receiving goods, leading to business disruptions. The e-way bill facility will only be restored the day after the outstanding GSTR-3B returns are filed. For instance, if a taxpayer neglects to file GSTR-3B for January and February, their GSTIN will become blocked on the e-way bill portal starting in March. The primary goal of this government initiative is to identify and bring non-compliant GST return filers into adherence.

How E-Way Bills Become Blocked

When a taxpayer consistently misses filing GSTR-3B for two or more months on the GST portal, this information is relayed to the e-way bill system, which then blocks the associated GSTIN. A blocked GSTIN cannot be used to generate e-way bills, whether as a consignor or consignee. This implies that a taxpayer will be unable to receive goods if their GSTIN is blocked. Taxpayers should regularly check the block/unblock status of their GSTIN to ensure compliance and avoid disruptions.

Steps to Unblock E-Way Bills

Filing of GSTR-3B

Once a defaulting taxpayer submits their GSTR-3B for the periods they missed, their GSTIN will automatically be unblocked by the subsequent day. Taxpayers can also expedite the e-way bill generation process immediately after filing their returns by following these steps:

  1. Access the EWB portal and select the 'Search Update Block Status' option.
  2. Input the GSTIN and CAPTCHA Code, then click 'Go'.
  3. Choose 'Update Unblock Status from GST Common Portal' to reflect the most current filing status.
  4. If these steps do not resolve the issue, contact the GST Help Desk for assistance.

Unblocking by Jurisdictional Officer

Though currently unavailable, a Jurisdictional Officer can manually unblock a GSTIN online based on a taxpayer's direct request.

Unblocking via Online Application in EWB-05

Taxpayers can submit Form EWB-05, detailing a valid reason for their failure to file GSTR-3B. Such a request cannot be denied without providing the applicant an adequate opportunity to be heard. For further details on how to utilize EWB-05 for unblocking, refer to the article on Application in Form GST EWB-05 For Unblocking of e-Way Bill Generation.

Taxpayer Impact from E-Way Bill Blocking

A significant consequence for taxpayers under this system is the inability to dispatch or receive goods without a valid e-way bill. If goods are transported without an e-way bill, authorities are authorized to impose a fine equivalent to the total tax amount due. Additionally, such goods may be impounded or held, and their release will depend on the payment of both the tax amount and a penalty. Delays in goods delivery can bring business operations to a standstill. Therefore, to prevent these situations, taxpayers must adhere to compliance requirements and file their returns punctually. This practice contributes to an overall increase in GST revenue and fosters greater system compliance.

Further Reading

Frequently Asked Questions

What is the primary reason for an e-way bill being blocked?
An e-way bill is primarily blocked when a taxpayer fails to file their GSTR-3B for two or more consecutive tax periods, either months or quarters.
Can a blocked GSTIN be used for both sending and receiving goods?
No, if a GSTIN is blocked, the taxpayer cannot use it to generate e-way bills as either a consignor (sender) or a consignee (recipient), effectively halting both dispatches and receipts.
How quickly does an e-way bill get unblocked after filing pending GSTR-3B returns?
Generally, the GSTIN gets unblocked automatically by the next day after the defaulting taxpayer successfully files all their pending GSTR-3B returns.
Are e-way bills generated before a GSTIN is blocked still valid for goods in transit?
Yes, any e-way bills that were validly generated before the GSTIN was blocked remain valid for the movement of goods and are not affected by the subsequent blocking.
What penalty might a taxpayer face for transporting goods without a valid e-way bill due to a blocked GSTIN?
If goods are transported without a valid e-way bill, authorities can levy a fine equal to the tax amount payable, and the goods may also be seized or detained until the tax and a penalty are paid.

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