All you need to know about- How E- way bill generation is blocked and unblocked?

Introduction

The E-way bill (EWB) is a document that was introduced as part of the GST system. Before transporting or shipping products worth more than INR 50,000 within the state or interstate, this bill is generated. But the taxpayer sometimes defaults, generating the E-way bill. So in 2019, the government came up with a significant change of blocking E-way bill generation for not filing GSTR 3B for 2 or more consecutive times. Along with that the government came up with unblocking E-way bill generation. In this blog, we will discuss the blocking and unblocking of E- way bill generation.

What is blocking E-way bill generation?

Blocking E- Way Bill generation means not allowing the taxpayer to generate an E-way bill if he has not filed GSTR 3B for the latest two successive months or quarters. The blocking of your GSTN number, a unique 15-digit identification number assigned to registered taxpayers under GST, is carried out by officials from the GST department.

For example, if a taxpayer has not filed his GSTR-3B for January 2022 and February 2022, then his GSTIN will get blocked in the e-way bill portal from March. The main intention of the government is to track down the non-filers of GST returns and make them liable.

How E- way bill generation is blocked?

If a taxpayer has not filed GSTR-3B for 2 or more consecutive months, then the registered taxpayers cannot generate e-way bills to do dispatches and receive goods, resulting in a standstill. It can be unblocked only when a taxpayer file GSTR-3B.

When the registered taxpayer tries to login in via GSTN or try to generate new E- way bill. A pop-up notification will be displayed on the screen, every single time the blocked taxpayer tries to generate a new E-way bill. The notification will look like the one mentioned in the screenshot.

What is unblocking E-way bill?

Unblocking E-way bill generation means allowing the generation of E-way bills for the GSTIN. Such facility would be automatically unblocked on the E- way bill portal when the taxpayer files GST Return and the default in filing return reduces to less than two financial periods.

How to unblock E-way bill generation?

The process of unblocking E-way bill generation is very simple. The E-way bill can be unblocked either by filing the GSTR 3B or by filing EWB-05 with the GST officials.

A. Filing GSTR 3B

Once the taxpayer files all the GSTR3B for which they are in default, the facility of E-way bill generation will be unlocked the forthcoming day. However, if you need to generate an E-way bill now only, then you should go the GST portal and follow the below steps:

• Go to the GST portal and logn in to the E- way bill system using the ID and password.
• Click on the “Unblock e-way bill” option from the main menu. Enter GSTN you wish to unblock the E-way bill generation.
• Select the reason for unblocking E-way bill generation from the given drop-down list.
• Click on the “Unblocking E-way bill” button.
• After this the GSTN  will be unblocked and now the taxpayer can generate E- way bill.

B. Filing EWB- 05

The taxpayer can unblock the E- way bill generation by filing the application in EWB- 05 with the sufficient cause of not filing GSTR 3B. The request will be rejected or accepted only after giving the opportunity of being heard.

Conclusion

E-way bills are subject to a uniform set of regulations under GST that are valid all across the India. It is generated electronically by the e-way bill portal. As long as taxpayer is filing GSTR 3B on time, taxpayer do not have to worry about your E-way bills being blocked. However, if the taxpayer fails to file GSTR 3B for two consecutive periods for whatever reason, then it will get blocked. But, once the taxpayer files the return, it will be unblocked.