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

The move comes in the wake of of the failure of the tax department to improve compliance in a significant manner since GST was launched in July, 2017.

The finance ministry is out to rein in recalcitrant businesses. Non-compliant businesses who fail to file returns regularly, will be barred from 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 Goods and Services Tax (GST).
 
Under the rules, the e-way bill is has to be generated from a common portal by a business for movement of consignment worth more than Rs 50,000. The supplier/recipient has to furnish part A of the form with details of GST identification number, value of goods and invoice number among others, while part B of the e-way bill form is furnished by the transporter with details of vehicle used.
 
“This effectively means that businesses who fail to file returns cannot transport goods at all,” FE quoted Rajat Mohan, partner at AMRG & Associates.
 
The move comes in the wake of of the failure of the tax department to improve compliance in a significant manner since GST was launched in July, 2017. 
 
Notably, nearly 30 per cent of eligible taxpayers continue to fail to file summary return GSTR-3B by the deadline, which is  20th of every month.
 
It is a matter of concern that nearly 29 per cent of the eligible 98.4 lakh taxpayers had not filed returns for November by the end of December.
 
In the case of composition scheme taxpayers who are required to file quarterly returns, over 25 per cent of nearly 18 lakh eligible taxpayers had not filed returns for July-September quarter till December 27.
 
The  low compliance and truncated return-filing system, have made the task of the tax department difficult to rein in tax evasion as the flow of intelligence data is fragmented. As per the GST Council announcement,  the new simplified return system would become operational from July this year. 
 
It must be noted that the cases of evasion has increased in the second year of GST.
 
Source: Financial Express

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