GST Network (GSTN), an organization responsible to provide the IT infrastructures for the Goods and Services Tax (GST), has activated the blocking-unblocking facility for the e-way bill generation. As many as 3.5 Lakh GST payers may see their e-way bill generation facility get blocked due to non-filing of their GSTR-3B returns for two consecutive months. The new rule to block the facility to generate the e-way bill is aimed at increasing compliance under GST and curb tax frauds.
The GST Council had notified of the decision to block the e-way bill for the non-filing of GSTR-3B a few months ago. Afterward, the taxpayers generating an e-way bill were shown the message on the e-way bill portal that the facility will be withdrawn if two consecutive GSTR-3B is not filed. The move is one of the measures that the government has taken to check GST evasion and fraud.
After being blocked, the GSTINs will not be able to generate e-way bills either as supplier, recipient or a transporter on the e-way bill portal. The e-way bill is an electronic document/bill which is generated for the movement of goods. However, the blocking of e-way bill generation is temporary and will be unblocked within three hours of payment of dues and filing returns.
According to the data provided by the GSTN, only 65-68% of eligible GST filers file the GSTR-3B within the due date.
GSTN data shows that 20.75 Lakh GSTINs have not filed GSTR-3B for the month of September and October. Out of these 20.75 Lakh GSTINs, 3.47 Lakh GSTINs (or 16.7%) had transactions in the e-way bill system for September and October 2019, which will get impacted immediately. Firms in West Bengal and Odisha are reported to have been severely affected by this move.