Restriction on generation of e way bill will be effective from 21st August 2019

restriction on generation of an e way bill
Share This Post

Last updated on January 9th, 2020 at 06:07 pm

Restriction on the generation of e way bill will be effective from 21st August 2019

Latest >>> Implementation of Rule 138E of CGST Rules deferred to 21st Nov 19/Restriction on the generation of e way bill will be effective from 21st November 2019

 

Considering the hardships of the taxpayers, the Government had extended the due date by 2 months for implementation of Rule 138E of the CGST Rules. The decision to extend the due date to 21st August 2019 from 21st June 2019 was taken in 35th GST Council Meeting. CGST Notification no. 25/2019 was issued for the same after the press release was issued on 21st June 2019. Once the Rule 138E of the CGST Rules is brought in force it would block the generation of e way bill if the GST returns are not filed for two consecutive periods.

Current Scenario

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 the 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.

 

Expected Scenario

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 23rd April 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)

(It was amended vide CGST Notification No. 75/2019 dated 26.12.19 in Ninth amendment to CGST Rules,2019)

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.

 

Is it still 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 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 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 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 waybill cannot be generated.
  •  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.

 

Conclusion

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. 



The article is compiled by 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 info.financepost@gmail.com.

Click on our below Social Media Links to receive regular updates

  

 

 

 

 

 

 


You may also like :

CA Ankita Khetan
Latest posts by CA Ankita Khetan (see all)

 

Disclaimer: The above content is for general info purpose only and does not constitute professional advice. The author/ website will not be liable for any inaccurate / incomplete information and any reliance you place on the content is strictly at your risk.

Follow us on Social Media by clicking below


Share This Post

4 Comments

  1. I AM A REGULAR REGISTERED DEALER. I AM REGULAR IN FILING MY GST RETURNS. MY BUYER IS ALSO REGULAR REGISTERED DEALER. MY BUYER HAS NOT FILED HIS GST RETURNS FROM THE LAST TWO MONTHS. CAN I MAKE A SUPPLY TO HIM AFTER GENERATING E-WAY BILL ?

    • NO you will not be allowed to supply goods to a person who has defaulted in filing return. While generating e way bill, If you ll key in the details of recipient who is a defaulter, system will not let you more further.

      The govt plans to stop movement of good and in turn business for the persons who don’t pay tax and file their returns regularly on time.

    • The rule 138E talks about default in filing return for two consecutive periods, it does not specify which return. I believe Govt. would be more concerned about the tax payments, so they would consider GSTR 3B for this purpose.
      But until clarification is issued for the same nothing can be said in particular. It’ll get clear after once it is implemented and EWB system starts to block for non filing of return. So it is better to file all GST returns on time and regularly.

Leave a Reply

Your email address will not be published.