Book a demo
IndiaAuditLens Law Library

Rule 138E of the CGST Rules, 2017

From the IndiaAuditLens Law Library

GST›CGST Rules, 2017›Chapter XVI, E-Way Rules

At a glance

Bars, duties and time limits

  • 138E(a)Composition taxpayers and persons using the specified notification benefit are restricted after failure to furnish FORM GST CMP-08 for two consecutive quarters.
  • 138E(b)–(c)Other persons are restricted for returns missing for two consecutive tax periods or outward supply statements missing for any two months or quarters, as applicable.
  • 138E(d)Registration suspension under rule 21A(1), (2) or (2A) also triggers the restriction.
  • 138E fourth provisoHistorical relief ran from 20 March 2020 to 15 October 2020 for specified returns or statements missing for February 2020 to August 2020.
  • 138E fifth provisoHistorical relief also ran from 1 May 2021 to 18 August 2021 for specified returns or statements missing for March 2021 to May 2021.

Procedure, powers and definitions

  • 138E first to third provisosThe registered person applies in FORM GST EWB-05. On sufficient cause, the Commissioner may permit furnishing through FORM GST EWB-06 with written reasons and conditions. Rejection requires a reasonable hearing opportunity; State or Union territory Commissioner decisions are treated as corresponding decisions here.
  • 138EThe law does not settle what makes the hearing opportunity reasonable before refusal of permission.

Rule 138E restricts furnishing Part A of FORM GST EWB-01 for outward movement of a registered person’s goods where specified filing defaults or registration suspension exist. The restriction overrides rule 138(1) and applies even when another person furnishes the information. The Commissioner may grant conditional permission on application, subject to written reasons and a hearing before rejection.[1]

Text

The text below is the rule as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Rules as published in the Gazette of India is the legal source.

Rule 138E, verbatim (show)

1[Rule 138E. Restriction on furnishing of information in PART A of FORM GST EWB-01. -

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 2[in respect of any outward movement of goods of a registered person, who, -]

(a) being a person paying tax under section 10 3[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,], has Not furnished the 4[statement in FORM GST CMP-08 ] for two consecutive 5[quarters]; or (b) being a person other than a person specified in clause (a), has Not furnished the returns for a consecutive period of 6[two tax periods]:

7[(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;]

8[(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:]

Provided that the Commissioner may, 9[on receipt of an application from a registered person in FORM GST EWB-05,] on sufficient cause being shown and for reasons to be recorded in writing, by order, 10[in FORM GST EWB-06 ] 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: 11[ 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.]

12[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 there turn 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 March, 2021 to May, 2021.]

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).]

1. Inserted (w.e.f. 21.11.2019 vide Notification No. 36/2019-C.T., dated20.08.2019) by Notification No. 74/2018-C.T., dated 31.12.2018.

2.Substituted vide Notification No.15/2021 - CT dated 18.05.2021 for "in respect of a registered person, whether as a supplier or a recipient, who,-"

3. Inserted vide Notification No. 31/2019 -CT dated 28.06.2019.

4. Substituted vide Notification No.31/2019 - CT dated 28.06.2019 for "returns".

5. Substituted vide Notification No.31/2019 - CT dated 28.06.2019 for "tax periods".

6.Substituted (w.e.f. 22.12.2020) vide Notification No. 94/2020 - CT dated22.12.2020 for "two months".

7. Inserted with effect from 11.01.2020vide Notification No. 75/2019- CT dated 26.12.2019.

8. Inserted vide Notification No 94/2020 -CT dated 22.12.2020.

9. Inserted vide Notification No.33/2019-CT dated 18.07.2019.

10. Inserted vide Notification No. 33/2019-CTdated 18.07.2019.

11. Inserted (w.e.f. 20.03.2020) vide NotificationNo.79/2020-CT dated 15.10.2020.

12. Inserted (w.e.f. 01.05.2021) vide Notification No. 32/2021-CT dated 29.08.2021.

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the rule they come from. They describe what the rule asks; they do not decide it.

Non-filing restriction trigger 138E(a)–(c)

Questions to answer on the file7 questions
Ticks stay in this browser only.

Suspension restriction trigger 138E(d)

Questions to answer on the file4 questions
Ticks stay in this browser only.

Commissioner permission evidence 138E first proviso

Questions to answer on the file5 questions
Ticks stay in this browser only.

Rejection hearing safeguard 138E second proviso

Questions to answer on the file3 questions
Ticks stay in this browser only.

State or Union territory permission recognition 138E third proviso

Questions to answer on the file2 questions
Ticks stay in this browser only.

2020 non-filing relief window 138E fourth proviso

Questions to answer on the file4 questions
Ticks stay in this browser only.

2021 non-filing relief window 138E fifth proviso

Questions to answer on the file4 questions
Ticks stay in this browser only.

Commissioner definition for clauses a and b 138E Explanation

Questions to answer on the file2 questions
Ticks stay in this browser only.

Amendment history

The CBIC text carries 12 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]

Amendments to Rule 138E as footnoted in the CBIC text
NoteChange
1Inserted (w.e.f. 21.11.2019 vide Notification No. 36/2019-C.T., dated20.08.2019) by Notification No. 74/2018-C.T., dated 31.12.2018.[2][3]
2Substituted vide Notification No.15/2021 - CT dated 18.05.2021 for "in respect of a registered person, whether as a supplier or a recipient, who,-"[4]
3Inserted vide Notification No. 31/2019 -CT dated 28.06.2019.[5]
4Substituted vide Notification No.31/2019 - CT dated 28.06.2019 for "returns".[5]
5Substituted vide Notification No.31/2019 - CT dated 28.06.2019 for "tax periods".[5]
6Substituted (w.e.f. 22.12.2020) vide Notification No. 94/2020 - CT dated22.12.2020 for "two months".[6]
7Inserted with effect from 11.01.2020vide Notification No. 75/2019- CT dated 26.12.2019.[7]
8Inserted vide Notification No 94/2020 -CT dated 22.12.2020.[6]
9Inserted vide Notification No.33/2019-CT dated 18.07.2019.[8]
10Inserted vide Notification No. 33/2019-CTdated 18.07.2019.[8]
11Inserted (w.e.f. 20.03.2020) vide NotificationNo.79/2020-CT dated 15.10.2020.
12Inserted (w.e.f. 01.05.2021) vide Notification No. 32/2021-CT dated 29.08.2021.[9]
Provisions connected to Rule 138E
ProvisionConnectionWords that tie them
Rule 138Rule 138 overridden by this provision138E opening: "Notwithstanding anything contained in sub-rule (1) of rule 138";
Section 10 of the CGST Act, 2017this provision branches on Section 10 of the CGST Act, 2017"paying tax under section 10"
Rule 21Athis provision branches on Rule 21A"sub-rule (1) or sub-rule (2) or sub-rule (2A) of rule 21A"

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this rule, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Notifications (8)

NumberDateSubject
Notification No. 38/2023-Central Tax4 August 2023Seeks to make amendments (Second Amendment , 2023) to the CGST Rules, 2017.
Notification No. 32/2021-Central Tax29 August 2021Seeks to make seventh amendment (2021) to CGST Rules, 2017.
Notification No. 15/2021-Central Tax18 May 2021Seeks to make fourth amendment (2021) to CGST Rules, 2017.
Notification No. 94/2020-Central Tax22 December 2020Seeks to make the Fourteenth amendment (2020) to the CGST Rules, 2017.
Notification No. 79/2020-Central Tax15 October 2020Seeks to make the Twelfth amendment (2020) to the CGST Rules.2017.
Notification No. 75/2019-Central Tax26 December 2019Seeks to carry out changes in the CGST Rules, 2017.
Notification No. 33/2019-Central Tax18 July 2019Seeks to carry out changes in the CGST Rules, 2017.
Notification No. 31/2019-Central Tax28 June 2019Seeks to carry out changes in the CGST Rules, 2017. amended by a later instrument

Unsettled questions

The words of Rule 138E do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.

  1. What makes the opportunity of being heard reasonable before refusal of Part A furnishing permission under Rule 138E?

See also

References

  1. Central Board of Indirect Taxes and Customs. "Rule 138E. Restriction on furnishing of information in PART A of FORM GST EWB-01". Central Goods and Services Tax Rules, 2017, CBIC tax information portal, with amendment footnotes 1 to 12. Retrieved 17 September 2026.
  2. Notification No. 36/2019-Central Tax, dated 20 August 2019: Seeks to extend the date from which the facility of blocking and unblocking of e-way bill facility as per the provision of Rule 138E of CGST Rules, 2017 shall be brought into force to 21.11.2019. Cited in CBIC footnote 1.
  3. Notification No. 74/2018-Central Tax, dated 31 December 2018: Fourteenth amendment to the CGST Rules, 2017. Cited in CBIC footnote 1.
  4. Notification No. 15/2021-Central Tax, dated 18 May 2021: Seeks to make fourth amendment (2021) to CGST Rules, 2017. Cited in CBIC footnote 2.
  5. Notification No. 31/2019-Central Tax, dated 28 June 2019: Seeks to carry out changes in the CGST Rules, 2017. Cited in CBIC footnotes 3, 4 and 5.
  6. Notification No. 94/2020-Central Tax, dated 22 December 2020: Seeks to make the Fourteenth amendment (2020) to the CGST Rules, 2017. Cited in CBIC footnotes 6 and 8.
  7. Notification No. 75/2019-Central Tax, dated 26 December 2019: Seeks to carry out changes in the CGST Rules, 2017. Cited in CBIC footnote 7.
  8. Notification No. 33/2019-Central Tax, dated 18 July 2019: Seeks to carry out changes in the CGST Rules, 2017. Cited in CBIC footnotes 9 and 10.
  9. Notification No. 32/2021-Central Tax, dated 29 August 2021: Seeks to make seventh amendment (2021) to CGST Rules, 2017. Cited in CBIC footnote 12.

External links