written by | October 3, 2022

All About Blocking and Unblocking E-way Bills

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Table of Content


Trying to generate an E-way bill but the GST portal not allowing you to do so? You’ve probably ruled out a glitch but wondering what it could be? We’ll help out you understand the why its happening and help you in unblocking E-way bill generation. But first, why do they get blocked? When businesses do not file their GST returns continuously for two tax periods, monthly or quarterly, depending on the taxpayer, then the government will block the E-way bill generation facility. Let’s quickly look into what are E-way bills, how they get blocked and how to unblock E-way bill generation.

Did you know? The e-way bill system was being implemented in phases. The first phase of implementation was rolled out on 1 April 2018 in Karnataka, Rajasthan, Uttarakhand and Gujarat.

Also Read: All You Need to Know About Advance Ruling under GST from AAR

What is an E-way Bill?

An e-way bill is an electronic way bill that is generated when goods worth more than 50,000 are transported within India. The e-way bill replaces the need for a physical bill and enables a smooth transport of goods across state borders. The e-way bill is generated using the GSTIN (Goods and Services Tax Identification Number) of the supplier and the recipient. 

It contains information such as the HSN code (Harmonised System Number Code) of the goods, the value of the goods, the mode of transport, the name and address of the supplier and the recipient and the GSTIN of the transporter. The e-way bill is valid for 15 days from the date of generation and can be extended by 10 days in case of inter-state transport of goods.

Why Are E-way Bills Important?

1. E-way bills are important because they help ensure the smooth movement of goods and transportation across India. By tracking the movement of goods and reducing the chances of tax evasion and smuggling, e-way bills keep the transportation system running smoothly and efficiently.

2. E-way bills also help in reducing the overall cost of transportation by avoiding delays and disruptions in the supply chain. By reducing the time and cost associated with manual documentation, e-way bills improve the efficiency of the transportation system.

3. E-way bills are also helpful in reducing the paperwork and administrative burden associated with the movement of goods. By simplifying the documentation process, e-way bills reduce the time and effort required to transport goods across the country.

4. E-way bills also help improve the transparency of the transportation system by providing a clear and accurate record of the movement of goods. This helps to ensure that goods are transported safely and securely and that taxes are paid correctly.

Also Read: GST Registration Limits - Increased GST Registration Threshold Limits | Explained

When is an E-way Bill Generated?

An e-way bill is generated when there is a movement of goods that are worth more than 50,000. It is generated by the registered person or the transporter on the e-way bill portal. The registered person should provide the information of the transporter and the vehicle in which the goods are being transported. The information relating to the consignment should also be mentioned. After the e-way bill is generated, a unique E-way Bill Number (EBN) is allocated to the supplier, recipient, and transporter. The validity of the e-way bill depends on the distance that the goods travel. The e-way bill is valid for 1 day for every 100 km. 

Why Do E-Way Bills Get Blocked?

As we briefly explained above, the E-way bill generation gets blocked by the government when the GST returns for 2 successive periods are not filed. An increase in the number of taxpayers not filing their GST returns forced the government to take this step from the December 2019. However, once the defaulters file their returns, E-way bill generation will be unblocked by the next day. 

Most, importantly, remember even if one of the following - supplier, transporter or recipient - has been blocked, then the you cannot raise the E-way bill. 

Also Read: GST Rates - Know GST Rates in India | Tax-Exempt Items | Slabs & More!

How to Unblock E-way Bill?

Once the taxpayer files the returns for which they are in default, the E-way bill generation facility will be unlocked the next day. However, if you need to urgently generate an E-way bill, then you must go the GST portal.

If your e-way bill is blocked, learn how to unblock it in a few simple steps:

1. Log into the e-way bill system using your user ID and password.

2. Select the "Unblock e-way bill" option from the main menu.

3. Enter the e-way bill number that you wish to unblock.

4. Select the reason for unblocking the e-way bill from the drop-down list.

5. Enter the date on which you wish to unblock the e-way bill.

6. Click on the "Unblock e-way bill" button.

The e-way bill generations facility will be unblocked from the date specified by you. You will be able to generate or regenerate the e-way bill for the same consignment on the same day.

Conclusion:

Under the GST, e-way bills are subject to a uniform set of regulations that are valid throughout the nation. It is generated electronically by the e-way bill website. As long as your GST returns are filed on time, you won't have to worry about your E-way bills being blocked. However, if you’ve been unable to file your returns for two consecutive periods for whatever reason, then it will get blocked. But, once you file the return, you can get it unblocked, its not complicated. 

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FAQs

Q: Who can generate e-way bills?

Ans:

The registered person(supplier or recipient) or the transporter who causes the movement of goods of consignment exceeding ₹50,000 in value, except the movement of goods by rail, shall require an e-way bill.

Q: What happens if an e-way bill is not generated?

Ans:

If an e-way bill is not generated, the transporter will be liable to pay a penalty of ₹ 10,000. In addition, the consignment will be liable to be seized and the transporter will not be allowed to transport any consignment without an e-way bill.

Q: How to check if an e-way bill is blocked?

Ans:

If you have not filed GST returns for two successive period then you wont be able to generate an E-way bill until you file those returns. So, if you try generating an E-way bill, it wont be successful.

Q: How long does it take to unblock an e-way bill?

Ans:

Once the returns in default are filed, the government will unblock an e-waybill bill generation facility the next day itself. But, if you need urgently generate, check the steps listed above in the blog.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.