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Goods and Services Tax Network (GSTN) has resumed blocking the generation of e-way bills for GST return filing defaulters. GSTN has released a statement in this regard on the GST portal.
What exactly did GSTN say?
As per the CGST Rules, GSTN had blocked the e-way bill facility for the taxpayers who have not filed monthly or quarterly tax returns for two consecutive tax periods. However, GSTN relaxed this provision and allowed the GST return defaulters to generate e-way bills due to the COVID-19 pandemic across the country.
Recently, GSTN stated that the blocking of the e-way bill generation facility has now resumed on the e-way bill portal for all the taxpayers.
What would GSTN check?
The GSTN would check the filing status of GSTR-3B and CMP-08, respectively. GSTR-3B is to be filed by a monthly return filer, and CMP-08 is filed by small businesses who have opted to file quarterly returns.
GSTN stated that it would periodically check the return filing status from the August 2021 tax period. It also clarified that the procedure for blocking the e-way bills would be the same as before the COVID-19 pandemic.
Hence, GSTN advised taxpayers to file pending GSTR-3B or CMP-08 to generate e-way bills continuously. Click here to know how to unblock your e-way bill facility if it is blocked due to the non-filing of GST returns.
Why has GSTN resumed blocking e-way bills?
The day-to-day operations of many businesses were hit badly during the COVID-19 pandemic, and the department intended not to trouble businesses in the form of compliance. However, now, the department resumed the blocking of e-way bills amid the resumption of business operations to the pre-COVID level.
Also, during the last month, the department decided to put several restrictions on non-filers of GST returns. Apart from the above move, w.e.f 1st January 2022, the department will block the GSTR-1 facility if a taxpayer does not file GSTR-3B for the previous tax period.
Currently, the department is blocking GSTR-1 only when taxpayers have not filed GSTR-3B for two months. These restrictions are placed to step up tax compliance and improve the GST revenues.
The department is focusing on the filing of GSTR-3B/CMP-08 as this is the point where taxpayers have to pay the tax liability. Hence, the department intends to use this as a checkpoint for enabling e-way bills and GSTR-1 and improve the taxpayer’s compliance.
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For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in
DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.
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