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Last updated: October 6th, 2021 7:04 PM

Blocking of e-Way Bill (EWB) Generation Facility after 15th August 2021

The Goods and Services Tax Network (GSTN) has issued notices to taxpayers regarding the restriction of the E-Way Bill (EWB) generation facility after 15th August 2021. The facility of blocking E-way bill generation had been temporarily suspended due to COVID 19 pandemic. The CBIC has now decided to resume the blocking of the EWB generation facility on the EWB portal, for all the taxpayers. E-way bill generation facility would be restricted in case of taxpayers (irrespective of their Aggregate Annual Turnover (AATO)/ fail to file their GSTR-3B returns/ Statement in FORM GST CMP-08, for a consecutive period of two months or more. The blocking of the E-Way Bill (EWB) generation facility is briefly explained in the current article.

Gist of Notification

CBIC will resume the blocking of the EWB generation facility on the EWB portal, for all the taxpayers from 15th August 2021 onwards. Taxpayers who have defaulted in the filing of 2 or more GSTR 3B returns, Upto the tax period of June 2020, are advised to file their returns immediately, as the E-Way Bill (EWB) generation facility for taxpayers will be blocked after 15.08.2021, as per GST Council decision.

This blocking will take place periodically from 16.08.2021 onwards.
To avail of continuous EWB generation facility on EWB Portal, taxpayers are advised to file the pending GSTR 3B returns/GST CMP-08 statements immediately

Blocking the e-Way Bill (EWB) – Rule 138 E (b) and (b) of the CGST Rules, 2017

As per Rule, 138 E (b) of the CGST Rules, 2017, the E Way Bill generation facility of a taxpayer is liable to be blocked, in case the person fails to file the GSTR-3B returns/ Statement in FORM GST CMP-08, for a consecutive period of two months or more. The system of e-way bill EB) blocking was implemented from 02.12 2019. As per the CGST rule, when a taxpayer fails to file GSTR-3B/ Statement in FORM GST CMP-08 for two or more consecutive months on the Goods and Service Tax portal, the same will be communicated to the e-way bill system and the Goods and Services Tax Identification Number (GSTIN) will be blocked. The GSTIN of the blocked taxpayers cannot be used for generating e-way bills either as Consignor or Consignee. It means the taxpayer will not be able to receive goods if the GSTIN gets blocked.

Applicability of EWB Blocking

As per the GST council announcement, this provision will be applicable for all the taxpayers irrespective of their Aggregate Annual Turnover (AATO) If the GSTIN associated with the respective PAN has failed to file the GSTR-3B/ Statement in FORM GST CMP-08 Return for a consecutive period of two/more months, their EWB generation facility will be blocked on the EWB portal.

Non-filing of two or more returns in Form GSTR-3Bfor the months up to June 2021 and
Non-filing of 02 or more statements in Form GST CMP-08for the quarters up to April to June 2021

With this notification, CBIC announced that the EWB generation facility for such GSTINs (whether as consignor or consignee or by transporter) will be blocked on EWB Portal after 15.08.2021.

Non-Applicability

E-Way Bill (EWB) generation facility will not be blocked for the following taxpayers:

If the taxpayer is not registered on the EWB portal
If the taxpayer has already filed the GSTR-3B Return for June 2021
If the taxpayer has already filed statements in Form GST CMP-08 for the quarters up to April to June 2021

Unblocking the EWB Generation Facility

As stated above, the GSTIN will be blocked for the E-Way Bill generation facility, in case, the taxpayer has failed to file Form GSTR-3B return for the last two or more consecutive tax periods. The E-Way Bill generation facility will be automatically unblocked on the EWB Portal when the taxpayer files the GSTR-3B Return and the default in Return filing reduce to less than two tax periods. A taxpayer can also file an online request for unblocking of the E-Way Bill generation facility with the jurisdictional tax officer.

Procedure to Unblock the EWB Generation Facility

A taxpayer can apply for unblocking of an E-Way Bill generation facility through an online request, citing the grounds why the facility should be un-blocked along with the required documents to the Jurisdictional Tax Official.

The Tax official receives the application for unblocking of E-Way bill generation and issues a Personal Hearing notice against the application.
The taxpayer can view the Personal Hearing Notice issued by the Tax official. The taxpayer can file a reply, attach required documents, and submit it either using DSC or EVC.
The Tax official then issues an order against the application considering the supporting documents attached by the taxpayer. The tax official can issue either accept or reject orders against the application.
In case the Tax officer issues Order of Acceptance for unblocking application, the facility to generate an E-way bill against that particular GSTIN will get unblocked, up to the validity period given in the order.
In case the Tax officer issues Order of Rejection for unblocking application, the facility to generate an E-way bill against that particular GSTIN will remain blocked and will be treated as closed status for that ARN.

Listed below are the various Application statuses while issuing an order of acceptance/rejection for unblocking of E-Way Bill generation facility:

Order Generation Enqueue - When Order generation is pending with Tax Official
Order of Acceptance Issued - When Order is generated by Tax Official for acceptance of unblocking of E-Way Bill generation facility request of the taxpayer
Order of Rejection Issued - When Order is generated by Tax Official for rejection of unblocking of E-Way Bill generation facility request of the taxpayer.
Already Unblocked- Dropped – When the Tax Official submits the order of unblocking for a Taxpayer and the status of the taxpayer was already unblocked at E-way bill System.
Pending with Tax Officer – When the application is pending with the Tax Official for decision.
Personal Hearing Notice Issued – When the Tax Official issues a personal hearing notice to the taxpayer.
Reply to Personal Hearing Filed – When the taxpayer files reply to the personal hearing notice.

Note: The tax official cannot reject an application without issuing Persona Hearing Notice against the application submitted.

The taxpayer can view the orders issued by the tax office in the ORDERS tab of the Case Details page. Also, the system would send the intimation to the Taxpayer via email and SMS.

View Orders of Unblocking of EWB Generation

In case, the order for rejection/acceptance of the unblocking request made by the taxpayer is issued by the Tax Official, an Email and SMS of acceptance/ rejection of the order will be sent to you on your registered email id and mobile number. After login to the portal, click on the Services option and then select the user services and then click View Additional Notices/Orders to view Acceptance/Rejection Order for unblocking of the E-Way Bill generation facility.

Validity of unblocking of an E-Way Bill generation facility

Unblocking of an E-Way Bill generation facility is valid up to the period indicated by the Tax Official in his/her order. Post the expiry of the validity period, the taxpayer will continue to be unblocked in the E-way bill system for the generation of EWB, if the taxpayer is not in the defaulter list, after the expiry of the validity period. Post the expiry of the validity period, the taxpayer will be automatically blocked in the E-way bill system, if the taxpayer is still in the defaulter list, after the expiry of the validity period. This will happen if the taxpayer fails to file Form GSTR-3B return / Statement in FORM CMP-08 for the last two or more consecutive tax periods, after the expiry of the validity period.

Generate E-way Bill

Once the defaulting taxpayer files GSTR-3B for the defaulting period, his/her GSTIN will get unblocked automatically by the next day. A taxpayer can also generate the e-way bill soon after filing his returns by following the steps below:

Access the E-Way Bill portal and choose the option ‘Search Update Block Status
Provide the details such as the GSTIN, CAPTCHA Code and click on ‘Go
Click on the Update Unblock Status option from GST Common Portal’; this will reflect the recent filing status.

Note: In case this doesn’t work, a taxpayer can reach out to the GST Help Desk and get the query resolved. Once the return is filed on GST Portal, the blocking status is removed by the system, next day Please click here to know more about the official notification on Blocking of e-Way Bill (EWB) Generation Facility After 15^th August 2021.