Blocking of E-Way Bill w.e.f 01/12/2019

An Electronic Way Bill is a bill which is generated when there is movement of goods in a vehicle or conveyance, the value of which (either each invoice or aggregate of all invoices in a vehicle) exceeds Rs 50000.

Why was blocking of E-Way Bill implemented and impact on taxpayers

The Central Board of Direct Taxes (CBDT) has notified the prescribed modes of payment for the purpose of section 269SU through Rule 119AA.

  1. In recent times there has been a rise in the number of tax defaulters due to non filing of returns.

  2. Out of the 20.75 lakh GSTIN’s who have not filed GSTR-3B for September and October 2019, 3.47 lakh had transactions in the e-way bill system.

  3. The decline in GST revenue collection owing to the non filing of returns has given rise to the need to introduce blocking of E-Way Bill.

  4. Transportation of goods without an E-way bill gives the authorities the power to seize the commodities as well the vehicle used for transport, which will be released only on the payment of tax. Thus, blocking of E-way bill will negatively impact the business operations.

  5. This move will ensure the timely filing of GST returns and consequently, increase in revenue collection.

Blocking of E-Way Bill

For example: A taxpayer who fails to file GSTR 3B for the month of January and February, will not be able to generate E-way bills from March due to blocking of GSTIN.

It is important to note that E-way bills generated before the blocking of GSTIN continue to remain valid and can be used for movement of goods.

Impact of blocking on transporters

A new provision namely Section 10A was also inserted in the Payment and Settlement Systems Act 2007, which provides that no Bank or system provider shall impose any charge on a payer making payment, or a beneficiary receiving payment, through electronic modes prescribed under Section 269SU of the Income-tax Act 1961. Consequently, any charge including the MDR (Merchant Discount Rate) shall not be applicable on or after 01st January, 2020 on payment made through prescribed electronic modes.

Unblocking of E-Way Bill

Immediate updation on EWB Portal

To generate E-way bills immediately after filing the returns for defaulting period,

If the GSTIN fails to get unblocked, the GST Help Desk can be contacted to resolve the issue.

Disclaimer:“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of particular situation.”

Prepared By

Sneha Mukundh

Date: 14/02/2020