Blocking and Unblocking of E-way Bill

Under the Goods and Services Tax (GST) framework, an Electronic Way Bill (E-way bill) is mandatory for the transportation of goods. 

The government portal will disable the E-way bill generation facility if you fail to file your GST returns for 2 consecutive months. You can unblock this facility by filing your returns on the GST Common Portal.

Form GSTR-3B is a summary return for taxpayers to report GST liabilities for a tax period. Regular taxpayers must file it for each tax period. 

 

When you fail to file GSTR-3B returns for two or more months, your Goods and Services Tax Identification Number (GSTIN) gets blocked. The government introduced this significant change on December 2, 2019 on the E-way bill portal.

 

It was implemented since the number of tax defaulters was consistently increasing in the country. A blocked GSTIN hampers the ability to generate E-way bills. Once you file your GSTR-3B returns, your bill will be unblocked within a day. 

 

To understand the process of E-way bill blocking, consider the following example: If you forget to file your GSTR-3B for 2 consecutive months, let’s say September 2024 and October 2024, your GSTIN will be blocked on the E-way bill portal starting from November 2024.

 

This initiative enables the government to closely monitor non-filers of GST returns and encourages them to become tax-compliant. Refer to the table given below for the latest changes regarding E-way bills:

Here is a quick snapshot of what happens when your E-way bill facility is impeded:

• You cannot generate E-way bills as a transporter, consignee, or consignor

• You cannot dispatch or receive goods without submitting an E-way bill

 

Once your GSTIN is blocked, you get a pop-up message when generating a new E-way bill or opting for bulk generation. The system also sends constant reminders and alerts, allowing you to update the status manually if needed.

Here are three effective methods how you can unblock your E-way bill, allowing you to continue your business operations without interruption:

GSTR-3B Filing

Upon filing your GSTR-3B in the GST Common portal, the ‘block’ status gets updated in one day. If this does not happen automatically, you can initiate the unblocking process manually.  Follow the steps mentioned here:

1. Visit the official E-way Bill Portal

2. Hover around the ‘Search’ tab

3. Click on ‘Update Block Status’

4. Enter your GSTIN details to view the status

5. Use the update option from the GST Common Portal to complete the process

Through Online EWB-05 Application

The EWB-05 application is another great way to unblock E-way bills. It allows you to present a valid reason for not submitting GSTR-3B. It cannot be denied without providing an appropriate opportunity for you to explain your case.

Here are the impacts of a blocked e-way bill:

• Consignors or Consignees Cannot Generate Bills 

The new blocking facility disables you from generating E-way bills. Whether you are a consignee or consignor, you cannot use your GSTIN to produce bills as you are a blocked taxpayer. 

• Transporters are Unable to Generate Bills

Even a transporter cannot generate E-way bills as a supplier or recipient using the GSTINs of blocked taxpayers. Remember, there is no impact on E-way bills that have already been generated. 

 

That simply means if your GSTIN is blocked after the generation of an E-way, there will be no impact on the movement of your goods. Your goods will reach their specific destination. 

• Penalties for Transporting Good without an E-way Bill

If goods are transported without an E-way bill, authorities can impose a fine equal to the tax amount due. Additionally, the goods may be seized or detained. They will only be released upon tax payment, along with a penalty.