Blocking and Unblocking of E-way Bill

The blocking of e-way bills on the government portal occurs when taxpayers fail to file their GST returns for two consecutive tax periods. This restriction can disrupt business operations and hinder the movement of goods. Understanding the process of e-way bill blocking, its implications, and how to unblock e way bill generation is crucial for compliance. This article provides detailed insights into the e way bill blocking and e way bill unblock methods to ensure seamless e-way bill management.

Brief on Blocking and Unblocking of E-way Bill

The latest notification by CBIC states that the registration of an assessee that is registered under the Goods and Services Tax Act will be canceled if he fails to file the monthly or the quarterly returns for two months. It means that the GSTIN will be blocked, GSTIN will be a 15 digit unique identification number that is assigned to every individual that is registered under GST. An alert is sent to the user when he is trying to generate an e-way bill by the system if it is found that the user has not filed the returns for 2 consecutive months and the GSTIN is blocked. The status of the GSTIN is auto-updated from blocked to unblocked in the e-way bill system when the users file GSTR 3B return in the GST Common Portal. This happens when GSTR 3B is filed in the GST common portal. In case the taxpayers did not file the GST returns for the last 2 successive months and click on the update button a message like this will be displayed.

If the status does not get auto-updated in the e-way bill system the taxpayer can also update the same by going to the e-way bill portal and then to the option Search Update Block Status. Once you have entered the GSTIN, the users can update their status by clicking on Update GSTIN from Common Portal. This is one of the procedures of e way bill unblock. In this way, the filing status from the GST Common Portal can be accessed and updated when the assessee files the returns.

Reasons for Blocking the e-Way Bill

In December 2019, the government introduced a pivotal update to the e-way bill system to enhance GST compliance. Under this regulation, the e-way bill generation facility is blocked for taxpayers who fail to file their GSTR-3B returns for two consecutive months or quarters. This step addressed the rising number of GST defaulters and encouraged timely return filing. For instance, if taxpayers do not file GSTR-3B for October and November 2022, their GSTIN will be blocked on the e-way bill portal starting in December. This restriction prevents the generation of e-way bills, halting the dispatch or receipt of goods, thereby disrupting business operations. The blockage is lifted automatically the day after the taxpayer files the pending returns, restoring compliance. The government's initiative underscores its commitment to tracking non-filers, fostering accountability, and maintaining the integrity of the GST system.

How e-Way bill will be blocked?

The e-way bill system is directly linked to the GST portal, ensuring seamless compliance monitoring. If a taxpayer fails to file their GSTR-3B returns for two consecutive months or quarters, the GST portal communicates this non-compliance to the e-way bill system. Consequently, the taxpayer’s GSTIN is blocked, restricting its use for generating e-way bills, whether as a consignor or consignee.

How to Unblock e Way Bill?

To resume e-way bill generation, taxpayers need to address the reasons behind the blockage. Here are the primary methods on how to unblock e way bill:

Method 1: Filing of GSTR-3B

The quickest way to unblock a GSTIN is to file the pending GSTR-3B for the defaulting period. Once filed, the GSTIN is automatically unblocked the following day. However, to expedite the process, taxpayers can follow these steps:

Log in to the e-way bill portal and select ‘Search Update Block Status.’
Enter the GSTIN, CAPTCHA code, and click ‘Go.’
Click ‘Update Unblock Status from GST Common Portal’ to refresh the status and enable e-way bill generation. If this process fails, taxpayers can seek assistance from the GST Help Desk.

Method 2: Unblocking by Jurisdictional Officer

Taxpayers can request their jurisdictional officer to unblock their GSTIN manually. This involves presenting a valid representation explaining the cause of non-compliance. While this feature is not yet operational, it remains an option for future consideration.

Method 3: Application in Form EWB-05

Taxpayers can file Form GST EWB-05 to request e way bill unblock of their GSTIN. The application must include a sufficient reason for non-filing of GSTR-3B, and authorities cannot reject it without providing an opportunity for the taxpayer to be heard.

Latest updates on GST E-way bill

5^th October 2021 The CBIC has temporarily suspended blocking of the E-way bill generation facility for the taxpayers who are failing to file the basis of their returns monthly or quarterly due to the covid pandemic.

Relaxations by the government to the taxpayers in India

The blocking facility of the blocking e-way bill generation has been temporarily suspended due to pandemics, in terms of Rule 138 E (a) and (b) of the CGST rules, 2017, the e-way bill generation facility of the person is liable to be restricted. If the person fails to file the return in Form GSTR 3B/ statement in CMP 08 for a consecutive period of two months/quarters or more. After August 15, 2021 the system will check the status of returns filed in Form GSTR 3B or the statements filed in Form GSTR 3B or the statements that are filed in Form GST CMP 08 and restrict the generation of EWB if:

Non-filing of two or more returns in Form GSTR 3B for the months up to June 2021.
Non-filing of two or more statements in Form GST CMP 08 for the quarters up to April to June 2021.

To avail continuous EWB generation facility on EWB portal, it is advised to file the pending GSTR 3B returns/ CMP 08 statements immediately.