Businesses under the Goods and Service Tax (GST) regime are supposed to file monthly tax returns by the 20th of the subsequent month. If for two consecutive months the GST returns are not filed, the non-filers will be barred from generating e-way bills for transporting goods from June 21, 2019.
However, businesses under the Composition scheme will be barred from generating e-way bills if they fail to file tax returns for two consecutive filing periods, which is six months.
The Central Board of Indirect Taxes and Customs (CBIC) has notified the following businesses that will be barred from generating e-way bills: consignor, consignee, transporter, e-commerce operator and courier agency.
The e-way bills system was introduced on April 1, 2018, wherein, the businesses were supposed to be issuing e-way bills for transporting goods for more than Rs 50,000 from one state to another. The transporters of goods worth over Rs 50,000 would be required to present the e-way bill if asked by the GST inspector; for intra-state movements, the notification was issued on April 15, 2018.
The Government has introduced such norms as an anti-evasion measure.
These measures help keep a check on the GST evasion and increase the revenue.
The Goods and Service Tax Network (GSTN) has put in place a system, which helps in detecting the businesses who haven’t filed their GST returns. It limits the suppliers, transporters and e-commerce operators not to sell or transport goods to non-filers. Hence, keeping in check the GST evasion.
The notification indicates the Government’s commitment to keeping businesses across India GST compliant.