Non Filing of GST returns may restrict E-way Bill Generation (w.e.f 21st June 2019)
Post implementation of GST, the major challenge of Government has been to increase the number of return filings and to maintain a steady growth in GST revenue. With the return filing front of the GSTN Portal stabilizing, now the Government has shifted its focus to revenue growth by arresting tax evasion.
Government has decided to introduced the provision w.e.f. 21st June 2019 as amended by GST (Amendment) Rules, 2018 – notified vide Notification No 74/2018 – Central tax dated 31st December, 2018 to restrict furnishing information in Part A of Form GST EWB – 01 for certain tax payers which is as under –
- For Composition Dealer (paying tax U/s 10 of CGST Act, 2017) – Non furnishing the return for two consecutive tax periods
- Being person other than Composition Dealer – Returns for consecutive period of two months
The amended provision shall come into force from 21st June 2019.
In cases of non-filing of GST Returns for prescribed period as enumerated above, the E-Way bill may not be generated either by Consignor, Consignee, Transporter, e-commerce operator or a courier agency.
|GST Central Tax Notification|
|SL. No||Notification No.||Summary||Link to access the
|1||Notification No. 22/2019 – Central Tax dated 23rd April, 2019||Return defaulters or Non filer’s who has not furnished their GST Returns for the last two tax periods shall be restricted to generate E-way bill w.e.f. 21st June 2019||Link|
|2||Notification No. 74/2018 – Central Tax dated 31st Dec, 2018||Copy of CSGT (Amendment) Rules, 2018 – Refer Point No 12||Link|
TaxMarvel Comments – It is an interesting development since this may not only impact the business directly but also shall impact the businesses where the defaulting party is its vendor or supplier. The restriction shall placed at GSTIN level of the defaulting party and even when the E-Way Bill is requested by the buyer or courier agency same may not get generated.
It is interesting to see how the above system is configured for the regular- taxpayers who have opted for quarterly filing of returns (GSTR 1 – Quarterly). Going forward, It shall become very important for the business to keep track of filing status of their vendors along with their own filing.
Note – This is for information only. For exact details of changes, the notification/Circular may please be referred to, as and when they are issued.
About TaxMarvel: TaxMarvel is a Consulting firm focused on providing GST services to small and medium enterprises. We offer host of GST Services be it registration or compliance or consulting or litigation support. We make GST easy for businesses by bringing in technology and subject matter expertise.
We are present at following locations: Hyderabad, Kolkata, New Delhi and Bangalore.
Our bouquet of services:
Goods & Services Tax (GST) | Corporate Laws | Income Tax and TDS | Start up Consulting | Business Advisory
You can contact us at: [email protected] | +91-9903129064 | For GST Updates pls visit our website www.taxmarvel.com
You May Also Like: Rule 46 (b) of the CGST Rules 2017 for Issuing Invoice in GST