Restriction on generation of an e way bill
LATEST>>> In the 35th GST Council meeting, it was decided to extend this date from 21st June 2019 to 21st August 2019. The announcement was made while addressing the media after the GST council meting.
Until now, taxpayers in India have never seen businesses being impacted by 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 taxpayer, that needs to be changed. People feel even if returns are not filed on time, there is always a choice of filing them with late fees, interest, penalty etc.
It is the first time in the history of India, where non-filing / late-filing of returns for two consecutive periods would lead to disturbance in movement/transportation of goods which in-turn may impact the businesses. As per CGST Notification no. 22/2019 dated 23rdApril 2019, Once the Rule 138E of CGST Rules,2017 which restricts furnishing of information in PART A of FORM GST EWB-01 is made effective from
21st June 2019, 21st August 2019. the taxpayers of India will realize 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 of 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 return is not filed for two consecutive periods
- If the person is a composition dealer :- GSTR-4 is not filed for two consecutive quarters.
- If the person is other than a composition dealer :- GSTR -3B/ GSTR-1 is not filed for two consecutive months.
Is it still possible to generate an e way bill, if there is a lapse in filing GST return 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, believes that there was 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 generation of an e way bill (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 will the restriction on generating e way bill become effective?
- If anyone from supplier or recipient has defaulted in furnishing GST return for two consecutive periods then e way bill cannot be generated.
- If a supplier/recipient tries to generate an e way bill 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 of FORM GST EWB 01.
Government’s this move of linking GST returns to 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.
The author of the article is CA Ankita Khetan. If you have any queries concerning the above article. Please write to us either in the comments section below or email us on email@example.com.
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You may also like :
- Download the CGST Notification no. 25/2019 dated 21.06.2019 which extends the effective date of implementation of Rule 138E.
- Download the CGST Notification no. 22/2019 dated 23.04.19 which notifies the effective date of implementation of Rule 138E.
- Download the CGST Notification no. 74/2018 dated 31.12.18 where Rule 138E was inserted vide fourteenth amendment to CGST Rules 2017.
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