Manish, a registered dealer under GST in Madhya Pradesh is engaged in business of toys for kids. Ashwani, a registered dealer under GST in Uttar Pradesh, a regular return filer supplies toys in bulk to Manish for selling

Rule 138E of the CGST Rules, 2017 contains provisions pertaining to blocking of e-way bill generation facility, i.e., disabling the generation of e-way bill. In view of provisions of Rule 138E, 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 a registered person, whether as a supplier or a recipient, who, - (a) 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. (b) 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. In terms of rule 138E, a person paying tax under regular scheme who has not furnished the returns for a consecutive period of 2 tax periods is considered as a defaulting person. Suspended GSTIN cannot generate e-way bill as supplier. However, the suspended GSTIN can get the e-way bill generated as recipient or as transporter. In other words, e-way bill generation facility is blocked only in respect of any outward movement of goods of the registered person who is not eligible for e-way bill generation as per rule 138E. E-way bills can be generated in respect of inward supplies of said registered person. Thus, applying the above provisions, there will be no restriction in generating e-way Bill by Ashwani as Ashwani who is making outward movement of goods is a regular return filer. E-way bill generation is blocked in case of movement of goods made by Manish to Ronak as it's an outward movement of goods of Manish who has not filed GSTR-3B for past 2 months.