The government has given an update on the Goods and Services Tax (GST) official portal that E-Way Bill (EWB) facility will be blocked for those who defaulted in filing two consecutive GSTR-3B returns. However, this is applicable for the taxpayers whose aggregate annual turnover was more than Rs.5 crore in the previous financial year.
The rule 138E (b) of the CGST Rules, 2017 states that the e-way bill generation facility of a person can be restricted, in case the taxpayer fails to file the GSTR-3B returns, for a consecutive period of two months or more.
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It is to be noted that the GST Council in its last meeting has decided that this rule will be made applicable for the taxpayers whose aggregate annual turnover is more than Rs 5 crore. The aggregate annual turnover will be computed based on PAN, and all the business conducted all over India will be considered while calculating the same.
As per the Council decision, the GSTN will make a check to sort out the taxpayers who have not filed their GSTR-3B for two or more periods till the tax period of August 2020 and blocks their EWB generation facility on the EWB portal.
Such default taxpayers have to complete their GSTR-3B filing before 15th October 2020 otherwise the EWB generation facility will be blocked on EWB Portal. The EWB facility will be blocked after 15th October 2020, so that the e-way bill can not be generated for such GSTIN by consignor or consignee or transporter as well.
The taxpayers are advised to file pending GSTR-3B returns immediately for continuously generating e-way bills without any hardship.
For any clarifications/feedback on the topic, please contact the writer at athena.rebello@cleartax.in
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