Blocking and Unblocking of the E-way bill generation facility came into existence on December 1, 2019. According to the SGST /CGST Rules 2017, if the GSTIN is ineligible, the consignor or the consignee may face difficulties in generating the E-way bill as per the Rule 138E.
What is the E-way Bill?
E-way or Electronic bill is an electronic bill specifically meant for the purpose of trading goods from and within the state, that is, either inter-state or intra-state. However, according to the recent GST regime, this transfer of goods can proceed only if the value of the goods is more than Rs.50,000.
For generating the E-way bill simply logs in to the official website ewaybillgst.gov.in. Else you may go for another option like SMS, Applications or API Integration for E-way bill generation. A unique number named as E-way Bill Number (EBN)will be provided to all who are generation the E-way bill.
What do you mean by Blocking of the E-way bill generation?
Every taxpayer opts for GST Registration Online and files the returns on the online GST portal. In case the taxpayer fails to file two or more uninterrupted GSTR 3B returns, then he or she will not be able to generate the E-way bill generation facility. This restriction for the taxpayer is considered as blocking of E-way bill generation facility as per Rule 138E of CGST /SGST Rules, 2017. Those taxpayers’ GSTINs will not be used for the generation of the bill neither as the consignee nor as to the consignor.
Consequences faced by the taxpayers while blocking of the E-way Bill
The taxpayers may encounter two different situations when their E-way bill generation facility is blocked:
Situation 1: After the taxpayers, E-way bill is blocked, every time they are going to generate the E-way bill, they surely will receive an SMS. The pop-up message appeared will describe the error regarding the non-filing of GSTIN 3B return.
Situation 2: Even if the blocked taxpayer used the same GSTIN with another identity, he will be caught and encounter the same message discussed in the first situation.
Why Blocking of the E-way bill generation is required?
There was not any hard and fast rule for blocking the E-way bill generation facility. However, the government felt the need for blocking the E-way bill for the tax payers who, knowingly or unknowingly, were failed to file the GSTR 3B return for two or more consecutive months.
So, if any taxpayers or trader who are not filing the GSTR 3B return for an uninterrupted two consecutive period, will not be able to generate the E-way bill for trading the goods. This Condition will only be removed once the taxpayer files the GSTR 3B return file.
What do you mean by Unblocking of the E-way bill generation?
As you are already aware of Blocking of E-way bill generation, you won’t get any trouble in understanding the concept of Unblocking of E-way bill generation. Unblocking of E-way bill generation refers to the process were the taxpayers who were blocked from generating the E-way bill gets the opportunity to restore the ability to generate the E-way bill. After filing the GSTIN 3B return, the status of the E-way bill will be changed from blocked to unblocked.
Not only the blocking is removed but the taxpayers also get the advantage of reducing the current period to less than the mentioned 2 uninterrupted tax periods. This process of Unblocking can be legally processed online on the GST portal where you get access to GST Registration online.
In case the status of the bill is still showing as blocked the taxpayer should immediately update it. For manually updating the status of Unblocking, you must follow the basic steps that are mentioned below:
- Step: Visit the official site of the E-way bill generation facility.
- Step: Log in to the E-way bill portal.
- Step: Now, navigate to the “Search Update Block Status” option and click on it.
- Step: Here, you need to enter your GSTIN and then continue further by clicking on Go.
- Step: Lastly, the user is required to click on the button that says “Update Unblock Status From GST Common Portal”.
The status of the E-way bill will be definitely cleared as Unblocked now.50