Lack of digital literacy, inability to afford the software required for GST, poor connectivity and power cuts are key challenges cited by the unorganised players to become compliant. “The government has been organising awareness sessions on GST for all traders. The concept of one tax and one nation is a welcome step and will improve boost manufacturing,” R. Chandalia, Secretary, Chennai Electronics and Information Traders Association, said.
However, he pointed out there are some challenges on the compliance front especially in terms of e-way bills. Under GST, the movement of goods worth over ₹50,000 within or outside a State will require securing an e-way bill by prior online registration of the consignment.
“Generation of e-way bill for movement of goods exceeding ₹50,000 even for intrastate transactions is unwarranted. The threshold limit should be substantially increased if not abolished,” he added.
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Logistics and transportation are largely in the unorganised sector and not very tax compliant, and the proposed e-way bill is making the unorganised sector nervous. Not many people in the unorganised trade have computers. Now they have to buy a computer and upload the software since everything is online. A basic software for GST costs ₹21,000, which many small traders cannot afford.
“Since everything is online under GST, you need to have good net connection for filing invoices. Also the areas in which we operate have erratic power supply, which would be a challenge,” said a trader.
“The government’s argument has been that if we can use WhatsApp we can also do invoice filing online. However, there is a difference between reading a story book and an MBA text book,” said one shop keeper.
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