Rule 138E bars regular and composition taxpayers from generating E-way Bill w.e.f. 21.06.2019 on failure to furnish GST Returns for 2 consecutive tax period/quarters respectively.
Vide Notification no 74/2018 dated 31.12.2018, a new Rule 138E was inserted by the Government, which has the salient features as follows:
- If the GST Returns for last 2 months have not been furnished by a regular dealer; or
- If the GST returns for last 2 quarters have not been furnished by a composition dealer,
- then such taxpayer will not be allowed to generate E-way Bill on the GST E-way bill portal.