No GST Returns = No E way Bills
The Government is all set to roll on the restriction on the generation of e waybill. It is very likely that this will help the Government to crack down on non-filers and in turn, answer the nation’s concern about GST collection which is dipping regularly on month by month basis. If sources are to be believed this time Government has no plan to again grant any extension in implementation of Rule 138E of CGST Rules, 2017.
Rule 138E of CGST Rules
Before the implementation of Rule 138E Taxpayers in India had never seen businesses being impacted by the non-filing / late-filing of returns. Compliances like filing GST returns, income tax returns, tax audits, statutory audits, etc are merely a procedure in minds of the taxpayers, that needed a change. People feel even if returns are not filed on time, there is always a choice of filing them with late fees, interest, penalty, etc.
After the implementation of Rule 138E First time in Indian history, the non-filing / late-filing of returns for two consecutive periods has led to disturbance in movement/ transportation of goods which in turn impacts the businesses. As per CGST Notification no. 22/2019 dated 23rd April 2019, the taxpayer will be restricted from generating the information in PART A of FORM GST EWB-01. Provisions of Rule 138E were made effective from 21st November 2019
Indians realized the importance of filing GST returns on time and regularly. If a taxpayer fails to furnish the GST return for two consecutive periods (month/quarter), will be barred from generating the e-way bills for transporting goods.
Detailed Analysis of Rule 138E of CGST Rules,2017
(It was inserted vide CGST Notification No. 74/2018 dated 31.12.18 in fourteenth amendment to CGST Rules,2018)
No registered person in the capacity of a supplier or a recipient (whether he is a consignor, consignee, transporter, e-commerce operator or courier agency) will be permitted to generate or furnish information in Part A of FORM GST EWB-01.
If the return is not filed for two consecutive periods
If the person is a regular taxpayer:- GSTR -3B is not filed for two consecutive periods.
If the person is a regular taxpayer:- GSTR -1 is not filed for two consecutive periods.
If a person is a composition taxpayer:- Payment in Form GST CMP-08 is not made for two consecutive tax periods.
NIC has issued the following in respect of Rule 138E (E-way Bill System)
- FAQs on Blocking/Unblocking of E-way Bills Generation
- Detailed explanation on Blocking/Unblocking of E-Way Bill generation issued on 12th Nov’19
- How to Unblock the GSTIN for the generation of e-waybill
What is the due date for the implementation of Rule 138E of CGST Rules?
The due date for implementation of Rule 138E of CGST Rules is 21st November 2019.
What will happen if Rule 138E of CGST Rules are implemented?
Once Rule 138E is implemented, if a taxpayer does not file GST Return for two consecutive tax periods then the facility to generate e way bill will be blocked on the e way bill portal.
Note: If anyone from supplier or recipient has defaulted in furnishing GST return for two consecutive periods then e waybill cannot be generated.
Note: If a supplier/recipient tries to generate an e waybill on the e way bill portal, and either of the party has defaulted. E way bill portal will not let you move further and generate the Part A of FORM GST EWB 01.
Is it possible to generate an e waybill, if there is a lapse in filing GST returns for two consecutive periods?
Yes, If a request is made by a registered person and Commissioner after giving an opportunity of being heard to the person, he believes that there were a sufficient cause and reasons for failing to comply with the returns. After recording the reasons in writing, the Commissioner may pass an Order with conditions and restrictions allowing the generation of an e waybill (i.e furnishing of information in PART A of FORM GST EWB 01).
Note: Permission granted or rejected by the Commissioner of State tax or Commissioner of Union territory tax will be considered/deemed as it is granted or rejected (as the case may be) by the Commissioner.
How can the facility to generate e way bills will be restored on the e way bill portal?
The facility to generate e way bills will be restored automatically on the e way bill portal, once the taxpayer complies with the filing of even one of the pending returns.
Notifications issued so far regarding the implementation of Rule 138E
The effective date for implementation – 21st November 2019 vide a CGST Notification no. 36/2019 dated 20th August 2019.
The effective date for implementation – 21st August 2019 vide CGST Notification no. 25/2019 dated 21st June 2019.
The effective date for implementation – 21st June 2019 vide CGST Notification no. 22/2019 dated 23rd April 2019.
For your reference – Screenshot of Rule 138E of CGST Rules from the CGST Notification no. 74/2018 dated 31st December 2018
For your reference – Screenshot of Amendments to Rule 138E of CGST Rules from the CGST Notification no. 75/2019 dated 26th December 2019
The Government’s this move of linking GST returns to the generation of e way bill will surely help to keep a check and curb tax evasion. Govt. plans to stop the movement of goods which will in turn stop or disturb the business for the persons who don’t pay tax and file their returns regularly on time. This move of govt. is likely to compel the taxpayers to file returns and pay tax on time.
You may also like :
- CGST Notification no. 15/2021
- CGST Notification no. 36/2019
- CGST Notification no. 25/2019
- CGST Notification no. 22/2019
- CGST Notification no. 74/2018