Andhra Pradesh

Traders’ organisations see red over e-way bill system

Srikakulam traders are vehemently opposing e-way bill system.

Srikakulam traders are vehemently opposing e-way bill system.   | Photo Credit: arrangement

Allege harassment; officials say goods undervalued to avoid GST

Compulsory e-way bill system has turned out into a bone of contention between the Commercial Taxes Department and traders’ organisations of Vizianagaram and Srikakulam district.

The department issued a new notification saying that the goods will be seized and penalty will be imposed if they are being carried without way bills. The department observed that a few traders were undervaluing goods to avoid tax. The goods worth below ₹50,000 don’t need to carry e-way bill. The department claims that the facility is being misused and their worth is undervalued during transport. The department seized many vehicles along with the goods for not carrying proper e-way bill which has to be collected from the supplier.

According to sources, the department imposed a penalty of ₹30 lakh for the violation of e-way bill rule recently. Consignments of garments, hardware material and others were seized recently. The tax and equal amount of penalty are reportedly being collected from the traders.

Joint Commissioner of Commercial Tax Department of Vizianagaram and Srikakulam districts N. Srinivasa Rao directed the transporters not to carry the goods without e-way bill since it would be treated as their involvement in tax evasion.

He held a series of meetings with transporters and traders to explain the latest orders issued by the State government.

The Chamber of Commerce-Vizianagaram has vehemently opposed the rule and said collection of e-way bill from the supplier of goods had become a Herculean task. Chamber president P.S.C. Nageswara Rao, secretary Kattamuri Prabhakar and chamber’s GST wing head Ashish Kumar Agarwal submitted a detailed memorandum explaining the way bill relaxations given by the Union government

“Union Finance Minister Arun Jaitely said that there is no need of way bill till January, 2018. That is why many suppliers of other States are not issuing them. It is not appropriate to insist for the way bills since dealers at the end point cannot generate them. The State government should withdraw the rule immediately. Otherwise, many traders will stop the business activity as they are left with no option,” said Mr. Nageswara Rao.

He has also strongly objected the allegations about the undervaluation. “The department is causing agony to many traders under the guise of undervaluation. It should pay the claimed value to the traders concerned and sell the goods to others. The traders are being forced to move around the officials to get back the goods even after doing the business in a legitimate manner,” he added.

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Printable version | Mar 27, 2020 1:06:27 PM | https://www.thehindu.com/news/national/andhra-pradesh/traders-organisations-see-red-over-e-way-bill-system/article21256150.ece

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