No E-way Bill If GST Returns Not Filed For 2 Consecutive Months

In order to compel non-compliant businesses to file returns on a regular basis, the finance ministry has suspended generation of e-way bill during consignment transport if either of the recipient or supplier of the cargo has not filed GST returns for two consecutive months.

The e-way bill is required to be generated by a business from a common portal for transport of goods valued more than Rs. 50,000. For the generation of the bill, supplier or the recipient provides part A with details including value of goods, GST identification number and invoice number among other details. And the other part of the e-way bill form i.e. part B is to be furnished by the transporter with details of vehicle used.

So, this in effect means that businesses which do not file or fail to file returns cannot engage in transportation of goods at all. There is still low compliance which can be acknowledged from the fact that nearly 30% of the eligible taxpayers do not file summary GSTR-3B return by the deadline which happens to be 20th of every month.

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