Blocking and Unblocking of E-way bills


Date: 02 Feb 2023

Blocking and Unblocking of E-way bills


If the taxpayers do not consistently file their GST returns for two tax periods, the government portal blocks the e-way bills. This article discusses what causes this and what may be done to make the generation of e-way bills possible.


Blocking of E-way bills

In 2019, the government devised a significant modification to the e-way bill portal's ability to generate e-way bills. For taxpayers who have yet to file their returns for the preceding two consecutive months/quarters, the generation of e-way bills is blocked.


The e-way bill-blocking system went into effect on December 2nd, 2019. The government took this essential action due to a significant increase in tax defaulters.


There will be a standstill if taxpayers fail to file GSTR-3B for two or more consecutive months since they cannot create e-way bills to dispatch and receive goods. Only after a taxpayer files GSTR-3B are the e-way bills released the following day.


For instance, a taxpayer's GSTIN will be barred on the e-way bill site starting in March if they still need to submit their GSTR-3B for January 2021 and February 2021. The government's major goal is to find non-filers of GST returns and bring them into compliance.


How is the e-way bill blocked?

The GST portal is required to notify the e-way bill system and block the GSTIN when a taxpayer fails to submit GSTR-3B for two or more consecutive months. Such prohibited taxpayers' GSTINs cannot be utilised to create e-way bills as either the consignor or the consignee. If the taxpayer's GSTIN is blocked, he won't be able to receive products.


How is the e-way bill blocked?

Filing of GSTR-3B

His GSTIN will immediately become unblocked the next day once the defaulting taxpayer submits GSTR-3B for the defaulting period. A taxpayer can use the methods listed below to create the e-way bill shortly after filing his returns:

  1. Go to the EWB portal and select the "Search Update Block Status" option.

  2. Enter your GSTIN and CAPTCHA code, then click "Go."

  3. The most recent filing status will display when you click "Update Unblock Status from GST Common Portal."

  4. If none of these helps, a taxpayer can contact the GST Help Desk to have their issue rectified.


Unblocking by a Jurisdictional Officer

Based on the manual representation from the taxpayer, even a Jurisdictional Officer can unblock GSTIN online.


Unblocking through online application in EWB-05

You can file an EWB-05 if you can justify not filing a GSTR-3B. Such a request can only be turned down by providing a fair chance to be heard. 


Effect on taxpayers of e-way bills being blocked

With this new system, taxpayers' main concern is that they will need an e-way bill to send or receive goods. The authorities may impose a fine equal to the amount of tax due if the products are moved without an e-way bill.


Such products may even be impounded or seized and only released after paying the tax and a penalty. The business can only cease if the goods are delivered on time. Therefore, the taxpayer must comply and submit returns on time to prevent such a problem. As a result, the GST revenue will increase overall, making the system more profitable.