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06/12/2017 11:27am

Andhra Pradesh’s e-way bill with punitive action on non-compliance, MSMEs complain chaos

image Andhra Pradesh’s e-way bill with punitive action on non-compliance, MSMEs complain chaos

New Delhi, Dec 6 (KNN) With the Goods and Services tax (GST) entering its sixth month since implementation and the e-way bill system being run thru in the state of Andhra Pradesh on strict note, the Micro, Small and Medium Enterprises (MSMEs) of the state are facing tough time amidst chaos and added burden, Vijayawada Chamber of Commerce and Industry informed.

Talking to KNN, Vakkalagadda Bhaskara Rao, President of Vijayawada Chamber of Commerce and Industry explained the situation.

He said that the state tax office has made it mandatory for the goods to have e-way bill in order to make movement. Not only is the bill mandatory, the office has laid out strict punitive actions in case a consignment is found moving without the bill, Rao informed.

Rao further said that the main problem with the new norm is that it is not universally implemented across the country, which is one of the causes of chaos in the sector.

Also with regard to the infrastructure required to comply with the e-way bill mechanism under the One Nation One Tax strategy of the government, Rao informed that the Micro, Small and Medium Enterprises operate on a very small scale and does not possess the required capacity to operate computers and software.

“The small units are mostly managed by a single person, most of them are not tech savvy, in such a scenario it is becoming difficult for the units to comply with the norm”, he said.

Rao also informed that in case the MSME chooses to outsource the task, it spells out as an added burden as the e-way bill experts charge no less than 15,000-20,000 rupees a month.

Responding to the reports of the department issuing out notice that the goods travelling without the e-way bill will be sized and also a penalty of 30 lakh rupees may be imposed, Rao said that there have been such incidents being reported, which is adding to the overall harassment on the MSMEs of the state.

Under the e-way bill norm of the GST, an e-waybill is mandatory to transport any item worth more than Rs 50,000 within the country. The bill is expected to be made mandatory pan India early in the following year. (KNN/ DA)

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