RESTRICTION ON FURNISHING OF INFORMATION IN PART A OF FORM GST EWB-01
Who is restricted?
- Registered persons: These restrictions apply to any registered person involved in the movement GST Act, 2017of goods, including consignors, consignees, transporters, e-commerce operators, and courier agencies.
- Non-compliers: The restrictions specifically target registered persons who haven’t fulfilled their return filing requirements for a certain period.
What are the restrictions?
- No generation of EWB: No person can generate an Electronic Way Bill (EWB) in Part A of Form GST Act, 2017 GST EWB-01 for goods transported by GST Act, 2017 a non-compliant registered person.
- Conditions for exemption: The Commissioner can grant permission to generate EWBs under specific circumstances, such as:
- On application by the non-compliant person, showing sufficient cause and providing reasons in GST Act, 2017GST Act, 2017
- Subject to conditions and restrictions specified by the Commissioner.
- After affording the non-compliant person a fair hearing in case of rejection.
What are the non-compliance scenarios?
There are three main scenarios where these restrictions apply:
- Non-filing of GST CMP-08: A person paying tax under section 10 (composition scheme) who hasn’t filed Form GST CMP-08 for two consecutive quarters.
- Non-filing of GSTR-3B or GSTR-1: A person other than those under the composition scheme who hasn’t filed GSTR-3B returns or statements of outward supplies in Form GSTR-1 for two consecutive tax periods.
- Registration suspension: A person whose GSTGST Act, 2017 registration has been suspended under specific provisions.
Temporary exemption during COVID-19:
- A temporary exemption existed from March 2020 to October 2020, where these restrictions GST Act, 2017didn’t apply for non-filing during the period February to August 2020 due to COVID-19 disruptions.
Additional notes:
- The Commissioner can also conduct physical verification of vehicles carrying goods, even GST Act, 2017without generating an EWB, if suspicion of tax evasion arises.
- For detailed information and any recent updates, it’s advisable to refer to the relevant notifications issued by the GST Council and official GST portals.
EXAMPLE
General restrictions:
- Non-filing of returns: A registered person cannot generate an e-way bill for outward movement of goods if they haven’t filed the Goods and Services Tax (GST) returns (GSTR-3B) for two GST Act, 2017consecutive tax periods.
- Non-filing of outward supply statement: Similarly, if a registered person hasn’t filed the statement of outward supplies (GSTR-1)GST Act, 2017 for any two months or quarters, they cannot generate an e-way bill.
- Suspension of registration: If a registered person’s GST registration is suspended under provisions of Rule 21A, they cannot generate an e-way bill.
Additional restrictions for specific categories of taxpayers:
- Composition taxpayers: These taxpayers, falling under Section 10 of the GST Act, have additional restrictions. They cannot generate an e-way bill if they haven’t filed the composition GST Act, 2017scheme statement (GST CMP-08) for two consecutive quarters.
Exemptions to the restrictions:
- The Commissioner of State Tax or Union Territory Tax can grant permission to generate an e-GST Act, 2017way bill even if the above restrictions apply, upon receiving an application in Form GST EWB-05 and being satisfied with sufficient cause shown.
- During specific periods, as notified by the government, GST Act, 2017the restrictions may be temporarily lifted. For example, in 2020, due to the pandemic, the restrictions were waived for a certain period.
Please note: These are just some examples, and the specific provisions may vary depending on the type of taxpayer and the state in which they are registered. For the most up-to-date GST Act, 2017 information, it’s always advisable to consult the official GST website or seek guidance from a tax professional.
FAQ QUESTIONS
- Who is restricted from furnishing information in Part A of Form GST EWB-01GST Act, 2017?
- Rule 138E of the CGST Rules, 2017 restricts certain registered persons from furnishing information in Part A of the e-way bill. This applies to:
- Tax defaulters: Any registered person GST Act, 2017 who has not filed GST returns for a specified period (currently, the previous three months) cannot be part of an e-way bill as either supplier or recipient.
- Persons availing specific composition scheme benefits: Registered persons under certain GST Act, 2017composition schemes, like Notification No. 02/2019 – State Tax (Rate), dated 7th March 2019, are also restricted unless notified otherwise.
- What are the conditions for lifting the restriction?
- The Commissioner of State or Union Territory Tax can grant permission to furnish information in Part A on a case-by-case basis if they are satisfied with the reasons for non-compliance. The GST Act, 2017applicant has the right to be heard before a decision is made.
- Are there any temporary exemptions to the restriction?
- Yes, there was a temporary exemption for the period from May 1, 2021, to August 18, 2021, for cases where specific GST returns couldn’t be GST Act, 2017 filed for March-May 2021. Currently, there are no active temporary exemptions.
- What are the consequences of trying to generate an e-way bill when restricted?
- The system will not allow generating an e-way bill if the supplier or recipient is under the restriction. Attempting to bypass the restriction could lead to penalties under the GST A
CASE LAWS
- Who is restricted from furnishing information in Part A?
No person can furnish information in Part A of the e-way bill for a registered person who:
- Has not filed GST returns (GSTR-3B or GSTR-1) for the previous three months.
- Is availing the benefit of Notification GST Act, 201702/2019-State Tax (Rate), dated 7th March 2019 (Maharashtra Government Gazette) and has not complied with the conditions mentioned in the notification.
- What types of registered persons are affected?
This restriction applies to all registered persons under the GST Act, regardless of their turnover GST Act, 2017or business activity.
- Are there any exceptions to the restrictions?
The restrictions are relaxed in certain situations:
- The period from May 1st, 2021, to August 18th, 2021, was exempt from this restriction.
- If the registered person GST Act, 2017 has a legitimate reason for not filing returns for the previous three months, they may apply to the Commissioner for permission to furnish information in Part A.
- What are the consequences of violating the restrictions?
Furnishing information in Part A for a restricted registered person may attract penalties and legal action under the GST Act. GST Act, 2017
- Where can I find more information about the restrictions?
The official GST Act, 2017notification for Rule 138E can be found on the Central Board of Indirect Taxes and Customs