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GSTN blocks e-way bill generation for non-filers

e-way bill generation

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the taxpayers generating an e-way bill were shown the message on the e-way bill portal that the facility will be withdrawn if two consecutive GSTR-3B is not filed.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.

Blocking of e-way bill facility is temporary

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.

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