Business EconomPosted at: Aug 5 2021 2:01PM Non-filers of GST returns to face the heat, blocking of E-way bill to start from August 15
New Delhi, Aug 5 (UNI) Non-filers of GST returns are set to face the heat as authorities have decided to resume blocking of E-way Bill (EWB) generation for defaulters.
Goods and Services Network (GSTN), the government firm managing GST portal, has issued an advisory to taxpayers saying the system will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08 from August 15 and restrict the generation of EWB in case of non-filing of two or more returns in Form GSTR-3B for the months up to June, 2021.
The E-way bill also be blocked for taxpayers not filing two or more statements in Form GST CMP-08 for the quarters up to April to June, 2021.
"To avail continuous EWB generation facility on EWB Portal, you are therefore advised to file your pending GSTR 3B returns/ CMP-08 Statement immediately," the advisory said.
Rajat Mohan, senior partner at AMRG Associates said that the government move is justified given that taxpayers were given sufficient extension during pandemic to comply with the statutory filing requirements.
"Now that pandemic situation has improved, the government is justified in asking taxpayers for statutory compliance," said Mohan.
An E-way bill is a system-generated pass for transporting goods from one place to in case their value exceed Rs 50,000. The E-way bill has details such as name of consignor, consignee, the point of origin of the consignment, its destination, and route among others.
This is a mechanism to prevent tax evasion under the new indirect tax regime.
"As you might be aware that the facility of blocking E way bill generation had been temporarily suspended due to pandemic, in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, the E Way Bill generation facility of a person is liable to be restricted, in case the person fails to file their return in Form GSTR-3B / statement in CMP-08, for a consecutive period of two months / Quarters or more," the GSTN advisory noted.
"The government has now decided to resume the blocking of EWB generation facility on the EWB portal, for all the taxpayers in terms of Rule 138 E (a) and (b) of the CGST Rules, 2017, from 15th August onwards," it added.
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