e-Way Bill : Blocking and Unblocking
The e-Way bill is a legal document that permits the transportation of goods between states.
An e-Way bill can only be generated through the site by a registered GST taxpayer. However, the GST officials can currently ban or unblock e-Way invoices or GSTINs as necessary.
If taxpayers do not consistently file their GST returns for two tax periods, e-Way invoices are blocked on the government portal.
About blocking the e-Way Bills & Reason
The government made a change to the e-way bill generation in 2019. Now, taxpayers who have not filed their returns for the previous two consecutive months/quarters are blocked from generating an e-way bill.
There will be a standstill if a taxpayer fails to file GSTR-3B for two or more consecutive months since they will be unable to create e-way invoices to dispatch and receive goods. The e-way invoices won’t be released the next day until a taxpayer files GSTR-3B.
For instance, a taxpayer’s GSTIN will be barred on the e-way bill site starting in March if they haven’t submitted their GSTR-3B for January 2021 and February 2021. The government’s major goal is to find non-filers of GST returns and bring them into compliance.
How is the e-Way Bill blocked?
According to the law, the e-way bill system will be notified, and the GSTIN will be blocked when a taxpayer fails to submit GSTR-3B for two or more consecutive months on the GST portal.
Such prohibited taxpayers’ GSTINs cannot be utilised to create e-way bills as either the consignor or the consignee. If his GSTIN is blocked, the taxpayer would be unable to obtain products.
How to unblock the e-Way Bill?
- GSTR-3B filing
If taxpayers fall behind on their GST payments, they can unblock their GSTIN by filing GSTR-3B for the defaulting period. After doing this, they can generate an e-way bill the next day. They should take the steps below to do this:
- Open the EWB website and choose “Search Update Block Status.”
- Enter your GSTIN and CAPTCHA code, then click “Go.”
- To view the most up-to-date filing status, choose “Update Unblock Status from GST Common Portal.”
- If none of these helps, a taxpayer can contact the GST Help Desk to have their issue rectified.
- Unblocking by Jurisdictional Officer
Based on a manual representation by the taxpayer, a Jurisdictional Officer can unlock GSTIN online (This facility is not available as of now).
- Unblocking through online application in EWB-05
If GSTR-3B was not filed for a valid reason, EWB-05 might be filed instead. Such a request cannot be denied without a reasonable chance to be heard.
Here’s how you can do that:
- Enter your login information into the GST portal.
- Go to Services > User Services > My Applications on the dashboard.
- The ‘My Applications’ page appears. From the drop-down selection in the “Application Type” field, choose “Application for unblocking e-way bill.” Select the “New Application” button.
- Make your selection for the “Expected date for submission of returns of the default periods.”
- From the drop-down option, choose “Reason of Unblocking by Taxpayer.”
- To upload the application’s required documents, click the “Choose File” option.
- Choose the checkbox at the bottom of the page. To continue, click the person’s name who signed the application.
- Click “Submit with DSC” or “Submit with EVC” from the “Submit Application” menu.
Impact on taxpayers due to blocking of e-Way Bills
The major issue with the new system for a taxpayer is that they cannot send or receive items without an e-way bill. If the items are moved without an e-way bill, the authorities may impose a fine equal to the amount of the tax due.
What happens if an e-Way Bill is blocked?
The taxpayers will experience the following two scenarios if the E-Way Bill is blocked:
- A pop-up message will appear every time the blocked taxpayer tries to create a new Eway bill.
- The following alert will occur if any taxpayer or transporter inserts the prohibited GSTIN while creating an Eway bill.
Ways To Update GST Common Portal e-Way Bill Unblocking Status
The authorised taxpayer/transporter is allowed to update previously created and valid Eway bills using the vehicle and transporter information. The taxpayer can use the GST site to generate an e-waiver right away after filing their taxes.
The steps are as follows:
- Select “Search Update Block Status” from the e-Way Bill site.
- Check the status by entering the GSTIN.
- If it is shown as blocked, they can choose Update to acquire the most current filing status from the GST Common Portal and unlock the e-Way Bill.
The taxpayer can contact customer service and file a complaint if the system has not yet allowed the GSTIN to create e-Way Bills.
Businesses dealing with goods transported from one location must have an Eway bill. Therefore, for efficient operations, business owners must understand the significance of creating an e-Way Bill.