No E-way bill, If GST returns not furnished for last two months- w.e.f. 21-06-2019

A new rule 138E, inserted by the Govt of India vide Notification no. 74/2018 – Central tax, dated 31st December, 2018, which are reproduced for your reference.

 “138E. Restriction on furnishing of information in PART A of FORM GST EWB-01.-

 Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of FORM GST EWB-01 in respect of a registered person, whether as a supplier or a recipient, who,—

(a) being a person paying tax under section 10, has not furnished the returns for two consecutive tax periods; or

(b) being a person other than a person specified in clause (a), has not furnished the returns for a consecutive period of two months:

Provided that the Commissioner may, on sufficient cause being shown and for reasons to be recorded in writing, by order, allow furnishing of the said information in PART A of FORM GST EWB 01, subject to such conditions and restrictions as may be specified by him:

Provided further that no order rejecting the request of such person to furnish the information in PART A of FORM GST EWB 01 under the first proviso shall be passed without affording the said person a reasonable opportunity of being heard:

Provided also that the permission granted or rejected by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by the Commissioner.

Explanation:– For the purposes of this rule, the expression ―Commissioner‖ shall mean the jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b).

The CBIC has notified the applicability of provisions of rule 138E of the CGST Rules, 2017 w.e.f 21st June, 2019 vide Notification no. 22/2019- Central tax, dated 23rd April, 2019.

Summary of above statutory provisions

1. If composition tax payers  has not furnished GST returns for 2 consecutive tax periods;   or

2. If registered tax payers has not furnished GST returns for 2 consecutive months;

then such persons shall not be allowed to generate E-way bills on GST portal

In such cases only jurisdictional commissioner has power to allow generation of E-way bill, subject to such conditions and restrictions as may be specified by him;

So consequently, registered tax payers has to file all pending GST returns upto April 2019 , on or before 20th June, 2019.

Otherwise, those registered tax payers  are not allow to generate E-way bill  on GST portal.

Disclaimer: All Readers are advised to refer relevant provision of law before applying or accepting any of the point mentioned above or not. Author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the contents of this write up.

The author is Chartered Accountant in Practice and reached at rajasekar@ggaca.in

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