How to Block and Unblock E-Way Bill?

You need an e-way bill when you transport goods worth more than ₹50000 from one place to another. However, you need to be a registered GST taxpayer to generate an e-way bill. There are certain cases when GST officials block or unblock e-way bills as and when required. In this article, you will learn what is the process of e-way bill blocking, the reason and impact along with how you can unblock it if you find yourself in such a situation.

Team Digit

How to Block an E-Way Bill?

A common question that arises is how blocking of E-Way Bill is done? The answer is, a taxpayer cannot block an e-way bill. GST authorities are only capable of blocking your e-way bill generation facility. An E-Way Bill will be blocked if you have not filed your GSTR-3B for the last 2 or more preceding tax period.

If your e-way bill is blocked, you can find it challenging to raise new bills for the movement of their goods in the future. Hence, they will have to unblock their e-way bill in this regard.

[Source]

What Are the Reasons to Block an E-Way Bill?

The main reasons for e-way bill blocking are to curb tax circumvention, monitor the rate of GST filing, and reduce tax evasion. This is because, for the past few years, the government has seen an increase in the number of tax defaulters on their GSTR-3B payments. Blocking an e-way bill is effective as it enhances tax revenue collection and reduces the chances of malpractice.

What Is the Impact of Blocking E-Way Bill on Transporters?

E-way bill blocking can have a significant impact on your business. If authorities block your GSTIN, you cannot send goods beyond a notified consignment value. This eventually leads to delays in delivering goods and harms your credibility with customers.

Moreover, if you move your items without an e-way bill, the authorities might impose a fine equal to the due tax. Further, authorities might seize your goods until you pay the penalty amount. Furthermore, the portal blocks GSTINs and they cannot generate invoices until someone unblocks them.

How to Unblock an E-Way Bill?

For unblocking e-way bills, you can perform any of the three following methods:

[Source]

1. Filing GSTR-3B

If you fall behind on your GST payments, you can unblock your GSTIN by submitting GSTR-3B for the period defaulted. After completing this process, you can generate an e-way bill the next day. You need to follow the steps given below in order to accomplish it:

Step 1: Open the E-Way Bill portal and click on “Search” option. From the drop-down, select “Update Block Status”.

Step 2: Enter your GSTIN and feed in your CAPTCHA code. Click on “Go”.

Step 3: Choose "Update Unblock Status from GST Common Portal" to view the status of the recent filing.

If you are still unable to unblock your GSTIN, you can contact the GST Help Desk to rectify this issue.

2. By a Jurisdictional Officer

You can give a manual representation to the Jurisdictional Officer in case you face any technical error or are in an emergency case. The officer then authenticates and accepts your request to unblock the GSTIN online.

3. Through Online Application in EWB-05

You can also apply for EWB-05 online to unblock your e-way bill. For unblocking, you need to follow the below steps to get away with your e-way bill blocking:

Step 1: Log in to the GST portal by providing your login credentials.

Step 2: On the dashboard, click “Services” and then “User Services”.

Step 3: Next, click on “My Applications”.

Step 4: From the dropdown menu select “Application Type” and choose “Application for unblocking e-way bill”.

Step 5: Click on "New Application" and choose "Expected date for submission of returns of the default periods".

Step 6: Select “Reason of Unblocking by Taxpayer” from the dropdown options.

Step 7: Upload your documents by clicking on "Choose File".

Step 8: Select the verification checkbox at the bottom of the page and the name of the person who signed this application to proceed.

Step 9: You also need to enter the name of the place from where you are filing this application. After filling in the details, click on “Proceed”.

Step 10: A pop-up message will appear. Click “Proceed” again to submit this application.

Step 11: Choose “Submit with EVC” or “Submit with DSC” whichever is applicable from the “Submit Application” menu.

If you prefer submitting with EVC, you need to enter the OTP sent to the authorised signatory's registered mobile number and email address. Once you enter the OTP, click on “Validate OTP”.
Alternatively, if you prefer submitting an application with DSC, click on the “Proceed” button and select your certificate. After that, click on the “Sign” button.

Upon completing the above procedure, the system will send a confirmation email and SMS to your registered email ID and mobile number, verifying the successful submission of your application form. You can download the acknowledgement application form.

What Is the Impact of Unblocking E-Way Bill on Transporters?

The blocking or unblocking of an e-way bill will not affect transporters as they are only registered on the e-way bill portal. However, you cannot use your blocked GSTIN as a consignee, consignor, or transporter to generate an e-way bill. Therefore, unblocking an e-way bill will help the transporter to resume the transportation of goods.

To summarise, an e-way bill blocking impacts your business operation significantly as the goods cannot be delivered or received without it. Therefore, complying with GST provisions and filing returns on time is important to ensure smooth business transactions.

FAQs About Blocking and Unblocking of E-Way Bills

All

How will you get to know whether your e-way bill generation is blocked or not?

For your e-way bill generation blockage, you will receive an SMS or email on your registered mobile number or email ID. Furthermore, during this period, you or any other user like the transporter, will not be able to generate an e-way bill using the GSTIN.

What are the things you should keep in mind while choosing a file when unblocking an e-way bill by filing EWB-05?

You can upload a file in either JPEG or PDF format only. Moreover, this file size should be a maximum of 1MB, and you can attach only four supporting documents.

Can a transporter complete an e-way bill generation on behalf of a blocked supplier or recipient?

If you are a supplier or recipient who is blocked, for non-filing of returns for consecutive two tax periods, then a transporter cannot complete e-way bill generation on your behalf. Moreover, the transportation of goods will come to a halt.

Will you receive a reminder before the validity period expires as mentioned in the unblocking order?

The GST portal sends a reminder to you via SMS and email before the validity expiration period. You will receive the reminder seven days before the validity period's expiry, urging you to file returns within a stipulated time to prevent the blocking of e-way bills.

Where can you check the status of your application for unblocking your e-way bill generation facility?

You can check your application status on the GST portal by navigating to the “Service” section and selecting “View Additional Notices/Orders”. Alternatively, you will receive an order via an SMS and email on your registered mobile number and email ID.

[Source]