GST systems to periodically check monthly return filing compliance for e-way bill blocking

New Delhi: GST systems will periodically check the status of monthly returns filed and taxes paid by businesses since August and block generation of e-way bills in case of non-compliance, GSTN has said.

GST Network, the company that handles the technology backbone for goods and services tax, said the blocking of the electronic way bill generation facility has now resumed on the e-way bill portal for all the taxpayers.

“Going forward, from the tax period August 2021 onwards, the system will periodically check the status of returns filed in form GSTR-3B or the statements filed in Form GST CMP-08 as per the regular procedure followed before the pandemic, and block the generation of EWBs (e-way bill) as per rule,” it said.

Last year, the Central Board of Indirect Taxes and Customs (CBIC) had suspended the blocking of electronic way (e-way) bill generation for non-filers to give them compliance relief during the COVID-19 pandemic.

In August this year, GSTN in an advisory to taxpayers had said that the government has decided to resume the blocking of e-way bill generation facility on the EWB portal, for all the taxpayers from August 15 onwards. Thus, after August 15, 2021, the system will check the status of returns filed in Form GSTR-3B or the statements filed in Form GST CMP-08 (for composition taxpayers filing quarterly returns) and restrict the generation of EWB in the case of non-filers, it had said.

As per GST rules, the e-way bill generation facility would be restricted, in case the business fails to file a return in Form GSTR-3B / statement in CMP-08, for consecutive two tax periods or more.

“To avail EWB generation facility on EWB portal on a continuous basis, you are, therefore, advised filing your pending GSTR 3B returns/ CMP-08 Statement on regular basis,” GSTN said.

AMRG & Associates Senior Partner Rajat Mohan said, “This automated check will push non-compliant taxpayers out of the supply chain leading to an acquiescent business ecosystem. Implementation of this check coupled with the festive season is bound to push tax collections for the current month”.

Nexdigm Executive Director (Indirect Tax) Saket Patawari said that with the resumption of businesses after the second wave of the pandemic, the government now seems to be focused on augmenting GST revenue collection and adherence to compliances.