No e-way bill if GST returns not filed for two months: GST Rules

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No e-way bill if GST returns not filed for two months: GST Rules

In a order to force non-compliant businesses to file returns regularly, the Ministry of Finance has barred e-way bill generation while transporting consignment if the supplier or recipient of the cargo has not furnished returns for two consecutive tax periods under GST Laws.

As per GST Rules Commissioner may, on sufficient cause being shown allows filing of PART A of FORM GST EWB 01, subject to such conditions and restrictions as may be specified by him.

Every registered person who causes movement of goods of consignment value exceeding fifty thousand rupees is required to generate E Way Bill. For this, the supplier/recipient furnishes part A of the form with details of GST identification number, value of goods and invoice number among others. Further, part B of the e-way bill form is furnished by the transporter with details of vehicle used.

Since the Launch of GST in July 2017 the tax department has not been able to improve compliance in a significant manner.. Nearly 30% of eligible taxpayers continue to fail to file summary return GSTR-3B by the deadline, which is set on the 20th of every month.

For instance, nearly 29% of the eligible 98.4 lakh taxpayers had not filed returns for November by the end of December. Similarly, for composition scheme taxpayers who are required to file quarterly returns, over 25% of nearly 18 lakh eligible taxpayers had not filed returns for July-September quarter till December 27.

Combined with low compliance and truncated return-filing system, the tax department has found it difficult to rein in tax evasion as the flow of intelligence data is fragmented. The GST Council has announced that the new simplified return system would become operational from July this year. The cases of evasion has increased in the second year of GST.

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