E-way bill generation to be blocked for businesses that don’t file returns under GST


The finance ministry has brought about a new rule under the Goods and Services Tax (GST) according to which businesses that do not file returns for two successive tax periods will be blocked from generating e-way bills at the time of transporting the goods. This may be the consequence if either the supplier or the receiver of goods has not filed the returns.

The finance department, in a move to improve compliance, has brought in this new rule.

The e-way bill is generated by a business through a common portal when cargo worth more than Rs.50,000 is being transported. To create an e-way bill, the supplier/recipient furnishes details such as the value of goods, GST identification number, invoice number, and so on in Part A of the form. Part B of the form will be filled by the transporter of the goods regarding details such as the vehicle being used to transport.

The new rule was introduced in order to push GST non-compliant entities to file returns on a regular basis. The tax department has been facing issues with compliance since the time GST was introduced in July 2017. The summary returns under GSTR-3B are set to be filed by the 20th of each month but nearly 30% of the eligible GST payers fail to do so.

Source: Financial Express


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