Unblocking GSTIN for E-way Bill generation

Update:

4th August 2021 :The government had temporarily suspended blocking of E-way Bill generation for taxpayers citing the pandemic. However, the latest GST advisory released on 4th August 2021 states that the blocking of the E-way Bill (EWB) generation facility will resume after 15th August 2021 as per Rule 138 E (a) and (b) of the CGST Rules, 2017.

16th November 2020: The GST Network or GSTN will activate an automated system from December 1, 2020 that will bar non-filers of monthly GST return form GSTR-3B, irrespective of turnover limits, from generation of E-way Bill.

Starting December 02, 2019, the barring of E-way Bill generation in case of non-compliance for 2 consecutive filing period has been implemented on the E- Way Bill portal.

Unblocking GSTIN for E-way Bill Generation in the case of non-filing of GST Returns is a major concern of the MSME sector. It was supposed to come into effect from 21st November 2019 however same was extended E-way Bill Generation blocking was announced to come into effect from June 21, 2019, through the Notification 22/2019-Central Tax ,dt. 23-04-2019, Rule 138 E which was postponed to 21st November 2019 as per Notification No. 36/2019 – Central Tax dated 20.08.2019.

The rule puts restrictions on the furnishing of information in PART A of FORM GST EWB-01. The rule blocks GSTIN for E-way bill generation for taxpayers failing to file GST Returns for 2 consecutive periods.

As per the rule, if a consignor, consignee or transporter fails to file his GST returns for 2 consecutive months, his GSTIN shall be barred from generating E-way bills for the transportation of goods. Similarly, composite dealers who are required to file quarterly returns shall have their GSTIN barred from E-way bill generation if their returns have not been filed for two consecutive filing periods i.e. six months.

Why is GSTIN blocked for E-Way Bill Generation?

Many a time, a taxpayer is unable to file his GST returns, intentionally or unintentionally. However, due to these missing invoices, the buyer is unable to claim ITC for taxes he has paid. Furthermore, the blocking of GSTIN for E-way bill generation is also being touted as an Anti-evasion step to shore up the revenue and increase GST compliance.

So, can the blocked GSTIN be unblocked?

Unblocking GSTIN for E-way Bill Generation

If your GSTIN has been blocked on the E-way Bill portal due to Non-Compliance, it can be unblocked as follows:

1. Automatic GSTIN unblocking

The GST Common Portal blocks the E-way Bill generation in absence of GSTR filing for 2 consecutive filing periods. However, as soon as the consignor, consignee or transporter files his GSTR 3B, the block status is automatically updated as ‘Not Blocked’ within a day in the e-way bill system and the taxpayer will be able to generate E-Way Bill once again.

This is how the system message is shown when timely GST filings are in place:

This is what the message is shown in case of non-filing:

2. What to do if GSTIN is not unblocked automatically after GST filing? or How can GSTIN be unblocked immediately upon filing the GST returns?

Generally, the common portal automatically updates the blocking status of the GSTIN within a day’s time of GSTR 3B filing. However, in case you are still not able to generate E-way Bill, you can manually refresh the GSTIN block status on E-way bill portal as follows:

Select Update Block Status from the search tab.
Enter the GSTIN and Captcha Value
And click on ‘Update GSTIN from Common Portal’.

This will fetch the status of Filing from GST Common Portal and if filed, the status in e-way bill system will subsequently get updated.

GSTIN Blocking alert

If a taxpayer has not filed his return for more than the filing period, he shall receive alerts saying, “E-Way bill generation may be blocked after few days as you have not filed the last two months successive returns at GST Common Portal” while generating an E-way bill on the common portal.

But this alert message does not mean it will block or stop the taxpayer to generate an e-way bill. But if the taxpayer fails to furnish the GST return after the lapse of the due date then from next month onwards, such taxpayers will be blocked.

How many days does it take to unblock a GSTIN on the E way bill portal?

As a standard procedure, GSTIN will be unblocked within a day on the E way bill portal. Once the taxpayer files the pending GST Returns (GSTR 3B) on the GST Portal, e way bill portal will automatically be updated and seamless generation of the e-way bill will continue.

For e.g, If a taxpayer files the pending GST returns on say 11th December 2019, then the GSTIN will be unblocked on 12th December 2019.

What if the GSTIN is still blocked, after filing the GST returns and also trying to update the GSTIN from the Common portal?

As a last resort, the taxpayer can raise a complaint about resolving the issue/case by contacting

GST Help Desk: 0120-4888999 or
State Specific Helpdesks or
Grievance Redressal Portal for GST

Latest Updates:

E-way bill blocking is now considered only for Supplier GSTIN and not for the defaulting Recipient or Transporter GSTIN. This is effective from 17^th June 2021.
Only when a taxpayer files GSTR3B, the e-way bills will get unblocked on the next day.
Suspended Supplier GSTIN cannot generate e-way bill, but Suspended Recipient and Transporter GSTIN will get e-way bills assigned to them