pri Blocking of e-way bill on non-filing of GST return Blocking of e-way bill on non-filing of GST return

Hello friends greetings for the day, in this current article we will discuss the proposal which will be implemented in the coming months regarding blocking of e-way bill in case GSTR-3B is not filled for consecutive two months. Implementation will take a little bit of time but non-fillers should get worried about the consequences for non-filing regular returns on a timely basis.

Continuous dip in revenue from the last few months has led to the government taking stern actions so that the lacunas can be plucked. The government and central board of indirect taxes and customs are planning measures against non-compliant taxpayers, by introducing blocking of e-way bill for the taxpayers not filing GST return for continuous two months.

Blocking of the e-way bill would mean that a GST taxpayer would not be able to generate an e-way bill unless he submits GST return, unblocking would take place on successful submission of return. If the taxpayer has not filed a return for two consecutive months then blocking would take place, when the e-way bill system will communicate with GST common portal and blocking/unblocking would take place accordingly.

The main hurdle for the implementation is the integration of the e-way bill system vis-à-vis GST common portal, the government cannot go ahead without proper linkage between both systems. This will be implemented in a phased manner initially taxpayers would be given alert messages.

This decision has been taken because of an increase in non-fillers of return and continuous dip in revenue, according to the CBIC as of November 2019 more than 21 lakh of taxpayers have not filed their return. In September 2019, the GST collection fell by 5.3% to Rs 95,450 crore as compared to the prior year. In August, the GST collections fell to Rs 92,000 crore, which was lower than the previous year collection by over 4%. With the average monthly collections so far this year at around Rs 98,000 crore, way below the required Rs 1.20 lakh crore, the government is looking at a large shortfall in GST collection.

The decision for the above was already taken in on the 31st GST council meeting on 22nd December 2018 but the linkage of the e-way bill system with GST common portal was needed for it. This move is being seen as the attempt to increase the collection, however, it would be seen in coming testing times the outcomes are fruitful or not.

In case of any doubts in the current topic or any  provisions of Indirect taxation (GST and CUSTOMS) then you may contact us at

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July 2021