The e-Way Bill system is a crucial factor for the smooth flow of commodities in India. However, in certain situations, the GST rules will block an e-Way Bill even though an error did not originate from the physical movement of goods. The article will explain how to unlock an e-Way Bill in simple terms.
What is Blocking of e-Way Bills & Why Does It Happen?
An e-Way Bill gets blocked when a taxpayer does not file two or consecutive GST returns (GSTR-3B) for consecutive tax periods. The taxpayer then needs fresh e-Way Bills, which has severely affected the movement of goods and smooth day-to-day business operations. The system blocks access due to the enforcement of the GST department itself.
How is an e-Way Bill Blocked?
The GST portal monitors taxpayers’ filing compliance. If a taxpayer defaults on filing GSTR-3B for two or more periods, the system automatically blocks their ability to generate new e-Way Bills. The portal tracks the returns and applies this restriction without manual intervention. Businesses cannot create new e-Way Bills for transporting goods until they address the compliance issue.
How to Unblock an e-Way Bill?
It can easily unblock an e-Way Bill but only after compliance:
- File GSTR-3B pending returns: The taxpayer needs to file all pending GST returns to clear the dues.
- Wait for system updation: The GST portal shall auto-unblock the e-way bill generation after 24 hours of filing.
- Approach the jurisdictional tax officer if necessary: In case the system fails to update, then a taxpayer can approach the tax officer to manually unblock his access to the e-Way Bill.
Impact on Taxpayers Due to Blocking of e-Way Bills
If an e-Way Bill is blocked, it brings havoc to the concerned business and more noticeably to businesses trading in physical goods. Here are a few impacts:
- Delay in shipment: As the generation of new e-Way Bills will not take place, cases of being stranded either at warehouses or while in transit can be anticipated.
- Penalties: There would be penalties and legal issues if the goods are transported without an authentic e-Way Bill.
- Customer dissatisfaction: Obstacles might lead to late delivery, which affects the customer relationship.
What Happens if an e-Way Bill is Blocked?
When blocked, the taxpayer won’t be able to
- generate e-Way Bills to transport goods.
- updated or modified existing e-Way Bills. This is valid till the time compliance is restored. However, the e-way bills that were generated before the blockage will remain valid in the actual times of their expiry.
Ways to Update GST Common Portal e-Way Bill Unblocking Status
After a taxpayer has filed all outstanding GSTR-3B returns:
- The GST common portal is likely to take 24 hours to Unblock e-Way Bill facility.
- Hence, the taxpayer can check his unblocking status log in to the portal by going to the e-Way Bill system.
- In the event of a delay in unblocking, it is recommended to follow up with the concerned jurisdictional officer or raise a support ticket on the GST portal.
Conclusion
A block on e-Way Bills is a compliance enforcement tool but would make a huge difference in business working. You would not get into such a situation provided you are updated with your GST returns. Even otherwise, the unblocking process is simple; you just need to file your pending returns and restore compliance so that businesses work without getting interrupted.
Also Read:
- E-way Bill Distance Limit: Everything You Need to Know
- What is an E-way Bill GST? And why do you need it?
- E-Way Bill for Job Work: A Comprehensive Guide
Frequently Asked Questions
What is an e-Way Bill?
An e-Way Bill is a basically critical electronic document that you are required when your goods are worth above a certain amount. So, in that sense, it’s a kind of digital pass through which you ensure the movement of goods will be legal, thus complying with all the GST requirements. Thus, you can ensure smooth movement of your goods from one state to another without giving in to the embarrassment of delays, and all the operations will be more transparent.
Why would my e-Way Bill get blocked?
You may encounter a lock on your e-Way Bill if you haven’t filed GSTR-3B returns for two or more consecutive tax periods. This means your GST system automatically locks your operations, truly emphasizing the importance of timely returns to keep all running smoothly.
How can I know if my e-Way Bill is locked?
Look up on the GST portal; this will be displaying both the e-Way Bill system and an indication of whether you have an unlocked position to generate new bills or access is presently restricted. Quick check avoids business disruption-savings of avoiding a few unnecessary hassles.
What should I do if my e-Way Bill gets blocked?
Firstly, you will, as a measure, file the pending GSTR-3B. Once the same is filed, usually, it takes around 24 hours for the system to restore the facility of generation of e-Way Bill. Simple procedure but one needs to react fast for normal movement in supply chain.
How many hours does it take to unblock an e-Way Bill upon filing of returns?
The GST portal will unlock for access of your e-Way Bill within some 24 hours of filing the pending returns. The system is pretty efficient, but you are going to have to be patient because everything does take a little time.
What happens in case of transportation if my e-Way Bill is blocked?
Try to get valid e-way bills. Otherwise, you will lose your goods at the place of transit, or you have to suffer penalties or fines. So, make sure that your e-way bill is active before sending goods.
Can I use the previously created e-Way Bills as well, if they have become blocked?
Although your generation of new e-Way Bills remains blocked you may continue to use any previously generated e-Way Bills for your shipments. Your e-Way Bills will not be impacted by your account being blocked and will expire as per date of generation.
How can I get help if my e-Way Bill remains blocked after filing returns?
In case your e-Way Bill is still being blocked even after filing returns, then there is no need to worry. You can contact the jurisdictional tax officer or file a support request on the GST portal. All required help in addressing any pending issues is provided to you.
Can I prevent my future e-way bills from being blocked?
Yes. Stay proactive by filing your GST returns on time, so your e-Way Bill is not blocked. Schedule reminders about the due dates so that you never miss GST compliances, which eventually help you evade future hassle.
What should I do if there’s a problem while unblocking my e-Way Bill?
If there arises some issues in unblocking, relax. Reach your tax consultant to seek advice or to the GST helpline for support. They will assist and guide you through the problem and get your e-Way Bill back in action.
