Home / News / India /  GST non-filers can’t raise e-way bills after 15 Aug

NEW DELH : After giving interest and late fee relief for delayed Goods and Services Tax (GST) return filings during the second wave of the pandemic, the government has now decided to restore restrictions on defaulters from raising e-way bills for goods transportation.

This will be effective after 15 August, according to an official communication. Restricting defaulters from raising e-way bills, a feature in the e-way bill portal meant to improve tax compliance, had been suspended due to the pandemic.

The official advisory issued by the Goods and Services Tax Network (GSTN), the entity that processes tax returns, said that the permit for goods shipment by a person is liable to be restricted in case GST return in form 3B (monthly summary of transactions) or CMP-08 in the case of small businesses filing quarterly returns are due for two or more tax periods.

The government has now decided to resume the blocking of e-way bill generation facility on the portal for defaulters, GSTN said. Thus, after 15 August, the system will check the status of returns filed and restrict the generation of the transport permit for non-filing of two or more monthly returns up to June or two or more statements for the quarters up to April-June, it said.

Blocking the generation of e-way bills for vendors may also indirectly impact large businesses where such non-compliant taxpayers are involved in the supply chain, according to Rajat Mohan, senior partner at chartered accountants firm AMRG & Associates.

GSTN advised businesses to clear their pending returns to be able to avail the e-way bill generation facility without any difficulty.

In view of the lockdown restrictions in various parts of the country during the second wave of the pandemic, the government had earlier cut the interest and late fee for delayed reporting of March and April sales. With the easing of lockdown restrictions, the authorities are now gearing up for higher tax collection and greater emphasis on compliance.

Gireesh Chandra Prasad
Gireesh has over 22 years of experience in business journalism covering diverse aspects of the economy, including finance, taxation, energy, aviation, corporate and bankruptcy laws, accounting and auditing.
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