CGST Rule 138E: Restriction on furnishing of information in PART A of FORM GST EWB 01

Provisions under Rule 138E of CGST Rules, 2017 relating to “Restriction on furnishing of information in PART A of FORM GST EWB 01”:

CGST Rule 138E: Restriction on furnishing of information in PART A of FORM GST EWB 01 (Chapter XVI: E-way Rules) [*1]

Notwithstanding anything contained in sub-rule (1) of rule 138, no person (including a consignor, consignee, transporter, an e-commerce operator or a courier agency) shall be allowed to furnish the information in PART A of FORM GST EWB 01, in respect of any outward movement of goods of a registered person, who,- [*7]

(a) being a person paying tax under section 10, or availing the benefit of notification of the Government of India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 189, dated the 7th March, 2019 [*2(a)], has not furnished the statement in FORM GST CMP 08 [*2(b)] for two consecutive quarters [*2(c)]; or

(b) being a person other than a person specified in clause (a), has not furnished the returns for a consecutive period of two tax periods [*6(a)];

(c) being a person other than a person specified in clause (a), has not furnished the statement of outward supplies for any two months or quarters, as the case may be; [*4]

(d) being a person, whose registration has been suspended under the provisions of sub-rule (1) or sub-rule (2) or sub-rule (2A) of rule 21A: [*6(b)]

Provided that the Commissioner may, on receipt of an application from a registered person in FORM GST EWB 05 [*3(a)], on sufficient cause being shown and for reasons to be recorded in writing, by order, in FORM GST EWB 06 [*3(b)], allow furnishing of the said information in PART A of FORM GST EWB 01, subject to such conditions and restrictions as may be specified by him:

Provided further that no order rejecting the request of such person to furnish the information in PART A of FORM GST EWB 01 under the first proviso shall be passed without affording the said person a reasonable opportunity of being heard:

Provided also that the permission granted or rejected by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be granted or, as the case may be, rejected by the Commissioner.

Provided also that the said restriction shall not apply during the period from the 20th day of March, 2020 till the 15th day of October, 2020 in case where the return in FORM GSTR 3B or the statement of outward supplies in FORM GSTR 1 or the statement in FORM GST CMP 08, as the case may be, has not been furnished for the period February, 2020 to August, 2020. [*5]

Provided also that the said restriction shall not apply during the period from the 1st day of May, 2021 till the 18th day of August, 2021, in case where the return in FORM GSTR-3B or the statement of outward supplies in FORM GSTR-I or the statement in FORM GST CMP-08, as the case may be, has not been furnished for the period March, 2021 to May, 2021. [*8]

Explanation: – For the purposes of this rule, the expression “Commissioner” shall mean the jurisdictional Commissioner in respect of the persons specified in clauses (a) and (b).

Notes (History of Amendments in Bare Text):

1. CGST Rule 138E inserted vide Notification 74/2018 and commenced from 21/11/2019 vide Notification 36/2019. Earlier CBIC announced and extended the commencement timeline of Section 138E vide Notification 22/2019 (from 21/06/2019), Notification 25/2019 (from 21/08/2019) and finally Notification 36/2019 (from 21/11/2019).

2. Amendments in sub-clause (a) from 28/06/2019 vide Notification 31/2019:

(a) the text “or availing the benefit of notification of the Government of India, Ministry of Finance, Department of Revenue No. 02/2019– Central Tax (Rate), dated the 7th March, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 189, dated the 7th March, 2019,” inserted after the text “being a person paying tax under section 10”.

(b) the text “returns” substituted with the text “statement in FORM GST CMP-08”.

(c) the text “tax periods” substituted with the text “quarters”.

3. Amendments in first proviso from 18/07/2019 vide Notification 33/2019:

(a) the text “on receipt of an application from a registered person in FORM GST EWB-05,” inserted after the text “Provided that the Commissioner may,”.

(b) the text “in FORM GST EWB-06” inserted after the text “reasons to be recorded in writing, by order”.

4. Clause (c) inserted from 11/01/2020 vide Notification 75/2019.

5. Fourth proviso inserted from 20/03/2020 vide Notification 79/2020.

6. Amendments from 22/12/2020 vide Notification 94/2020:

(a) in clause (b), the text “two months” substituted with the text “two tax periods”.

(b) clause (d) inserted.

7. The text “in respect of a registered person, whether as a supplier or a recipient, who,-” substituted with the text ‟in respect of any outward movement of goods of a registered person, who,-” from 18/05/2021 vide Notification 15/2021.

8. Fifth proviso inserted from 01/05/2021 vide Notification 32/2021.