Non-filers of GST returns for 6 consecutive months will soon be barred from generating e-way bills for movement of goods.
The Goods and Services Tax Network (GSTN) is developing such IT system that businesses who have not filed returns for two straight return filing cycle, which is 6 months, would be barred from generating e-way bills, an official said.
"As soon as the new IT system which will ensure barring of e-way Bill generation if returns are not filed for 6 months is put in place, the new rules will be notified," an official told PTI.
The move, officials believe, would help check Goods and Services Tax (GST) evasion.
Central tax officers have detected 3,626 cases of GST evasion/violations cases, involving Rs 15,278.18 crore in April-December period.
Touted as an anti-evasion measure, e-way bill system was rolled out on April 1, 2018, for moving goods worth over Rs 50,000 from one state to another. The same for intra or within the state movement was rolled out in a phased manner from April 15.
Transporters of goods worth over Rs 50,000 would be required to present e-way bill during transit to a GST inspector, if asked.
Officials feel that to shore up revenue and increase compliance, stringent anti-evasion measures have to be put in place.
To this effect the revenue department is working towards integrating that e-way bill system with NHAI's FASTag mechanism beginning April to help track movement of goods.