e-Way Bill : Blocking and Unblocking

The e-Way bill is a legal document that permits the transportation of goods between states.

An e-Way bill can only be generated through the site by a registered GST taxpayer. However, the GST officials can currently ban or unblock e-Way invoices or GSTINs as necessary.

If taxpayers do not consistently file their GST returns for two tax periods, e-Way invoices are blocked on the government portal.

About blocking the e-Way Bills & Reason

The government made a change to the e-way bill generation in 2019. Now, taxpayers who have not filed their returns for the previous two consecutive months/quarters are blocked from generating an e-way bill.

There will be a standstill if a taxpayer fails to file GSTR-3B for two or more consecutive months since they will be unable to create e-way invoices to dispatch and receive goods. The e-way invoices won’t be released the next day until a taxpayer files GSTR-3B.

For instance, a taxpayer’s GSTIN will be barred on the e-way bill site starting in March if they haven’t submitted their GSTR-3B for January 2021 and February 2021. The government’s major goal is to find non-filers of GST returns and bring them into compliance.

How is e-Way Bill blocked?

According to the law, the e-way bill system will be notified, and the GSTIN will be blocked when a taxpayer fails to submit GSTR-3B for two or more consecutive months on the GST portal.

Such prohibited taxpayers’ GSTINs cannot be utilised to create e-way bills as either the consignor or the consignee. If his GSTIN is blocked, the taxpayer would be unable to obtain products.

How to unblock e-Way Bill?

1. GSTR-3B filing

If taxpayers fall behind on their GST payments, they can unblock their GSTIN by filing GSTR-3B for the defaulting period. After doing this, they can generate an e-way bill the next day. They should take the steps below to do this:

• Open the EWB website and choose “Search Update Block Status.”
• Enter your GSTIN and CAPTCHA code, then click “Go.”
• To view the most up-to-date filing status, choose “Update Unblock Status from GST Common Portal.”
• If none of these helps, a taxpayer can contact the GST Help Desk to have their issue rectified.

2. Unblocking by Jurisdictional Officer

Based on a manual representation by the taxpayer, a Jurisdictional Officer can unlock GSTIN online (This facility is not available as of now).

3. Unblocking through online application in EWB-05

If GSTR-3B was not filed for a valid reason, EWB-05 might be filed instead. Such a request cannot be denied without a reasonable chance to be heard.

Here’s how you can do that:

• Enter your login information into the GST portal.
• Go to Services > User Services > My Applications on the dashboard.
• The ‘My Applications’ page appears. From the drop-down selection in the “Application Type” field, choose “Application for unblocking e-way bill.” Select the “New Application” button.
• Make your selection for the “Expected date for submission of returns of the default periods.”
• From the drop-down option, choose “Reason of Unblocking by Taxpayer.”
• To upload the application’s required documents, click the “Choose File” option.
• Choose the checkbox at the bottom of the page. To continue, click the person’s name who signed the application.
• Click “Submit with DSC” or “Submit with EVC” from the “Submit Application” menu.

Impact on taxpayers due to blocking of e-Way Bills

The major issue with the new system for a taxpayer is that they cannot send or receive items without an e-way bill. If the items are moved without an e-way bill, the authorities may impose a fine equal to the amount of the tax due.

What happens if an e-Way Bill is blocked?

The taxpayers will experience the following two scenarios if the E-Way Bill is blocked:

1. A pop-up message will appear every time the blocked taxpayer tries to create a new Eway bill.
2. The following alert will occur if any taxpayer or transporter inserts the prohibited GSTIN while creating an Eway bill.

Ways To Update GST Common Portal e-Way Bill Unblocking Status

The authorised taxpayer/transporter is allowed to update previously created and valid Eway bills using the vehicle and transporter information. The taxpayer can use the GST site to generate an e-waiver right away after filing their taxes.

The steps are as follows:

1. Select “Search Update Block Status” from the e-Way Bill site.
2. Check the status by entering the GSTIN.
3. If it is shown as blocked, they can choose Update to acquire the most current filing status from the GST Common Portal and unlock the e-Way Bill.

The taxpayer can contact customer service and file a complaint if the system has not yet allowed the GSTIN to create e-Way Bills.

Businesses dealing with goods transported from one location must have an Eway bill. Therefore, for efficient operations, business owners must understand the significance of creating an e-Way Bill.