Shivani Bhakoo

Tribune News Service

Ludhiana, June 7

Ludhiana-based traders have found a unique way to circumvent the newly introduced e-way bill system and avoid paying GST. Instead of transporting goods by mini trucks, they use horse-carts or manual carts.

An e-way bill is not required if goods are transported by a non-motorised carriage such as horse-carts. Although the e-way bill is optional only for goods less than Rs 50,000 in value, unscrupulous traders use non-motorised conveyance to transport goods beyond the exemption limit.

The e-way billing system and rules have been designed by the Union government, Punjab Financial Commissioner-Taxation MP Singh said.

“Regular meetings are held with the Government of India and now this has been brought to my notice, we will take up this issue,” he said.

Dealers transport construction materials and furniture (sofa sets) on horse-carts in Ludhiana after the introduction of the intra-state e-way bill system from June 1.

Punjab had been notorious for bogus billing even during the erstwhile VAT regime, the indirect tax structure has changed but the unscrupulous activities of under-invoicing are still on, Federation of Punjab Small Industries Association president Badish Jindal said. Many traders buy and sell their material in “number two” for saving the GST, he added.

Before the introduction of the e-way bill, unscrupulous traders used to transport goods with invoices. After the material reached the destination undetected by the tax inspectors, both the buyer and the seller tore the invoices to evade GST, he said. The e-way bill has been introduced to check tax evasions in the GST regime.

“As far as evading taxes like this is concerned, this reflects the mentality of people, which we cannot change. May be, they will face the repercussions later, which they are not realising now,” MP Singh said.

Ludhiana-based GST Lawyer Mohit Aggarwal said dealers have unfounded fear about e-way bill procedures. Initially, generating an e-way bill is a tedious process but it becomes an effortless process after a person has generated three or four bills.