The All India Transporters Welfare Association (AITWA), one of the foremost apex bodies of India’s Road Transport Sector, along with The Confederation of All India Traders (CAIT) on February 26 against Goods and Services Tax (GST) has extended support to the Bharat bandh.
Nearly 40, 000 trade associations have extended support to the Bharat bandh called by the Confederation of All India Traders (CAIT) on February 26, demanding a review of the provisions of the goods and services tax (GST) regime.
The All India Transporters Welfare Association (AITWA), an apex body of organized road transportation companies demanding the abolition of the new E-Way Bill or scrapping of certain rules. It has also urged the government to abolish E-Way Bill and track vehicles by using Fast-Tag connectivity to E-Invoice and to scrap the penalty on transporters for any time-based compliance target of transit and make diesel prices uniform across the country.
The nature of the movement is to reject booking and movement of all E-Way Bill oriented goods for one day. All transport companies are asked to park their vehicles between 6 am to 8 pm as a symbolic protest.
Under Section 129 of the CGST Act, 2017, transporters will have to pay penalties amounting to 200 percent of the tax value or 100 percent of the invoice value for a truck carrying a consignment with an expired or faulty e-way bill.
What is an e-Way Bill?
The e-way Bill System for Inter-State movement of goods across the country has been introduced from 01 April 2018. e-Way Bill is mandatory for Inter-State movement of goods of consignment value exceeding Rs. 50,000/- in motorized conveyance.
Goods and services tax as applicable in India from 1st of July 2017 while there are other provisions including GST E Way Bill which was recently applicable from 1st April 2018 across the nation.
According to reports, The new amendments shall be effective from January 1, 2021:
According to the new changes, the validity of the e-way bill has been amended to 1 day for every 200 km of travel, as against 100 km earlier. This is applicable only in cases other than Over Dimensional Cargo or multimodal shipment where transport by ship is also involved.
— All India Transporters Welfare Association (@aitwa) February 24, 2021
In simple words, an e-way bill once created will be valid for 1 day for up to 200 kilometers of travel. For every 200 km. or part thereof thereafter, one additional day will be allowed.
In the case of Over Dimensional Cargo or multimodal shipment in which at least one leg involves transport by ship, the one-day validity of the e-way bill is applicable for up to 20 km of travel. Beyond that, one additional day will be allowed for every 20 km or part thereof.
— All India Transporters Welfare Association (@aitwa) February 25, 2021
For small and medium transporters, especially those involved in the part-load movement of goods or retail transportation, complying with the new rule has meant a higher and costly compliance burden, with penalties running into lakhs of rupees, for circumstantial delays. This may lead to completely shutting their shop.
Announcing the Bharat Bandh last week, CAIT said dharnas (protests) will be held nationwide in 1,500 places demanding the Centre, state governments and the GST Council to keep in abeyance the “draconian” provisions of GST.
— Chartered Accountants Association, Surat (@caas_org) February 25, 2021
The All India Transporters Welfare Association (AITWA), a body representing over 9 million road transport service providers of India has put out an advisory for its members not to buy any new trucks for the entire financial year 2020-21.
AITWA demands abolishing the E-way bill as the newly introduced E-invoice is good enough for preventing tax evasion. Vehicles may be tracked by the Government using Fast-Tag connectivity to E-invoice. Transporters should not be subject to any penalty by the Government for any time-based compliance target of transit. Diesel prices should be reduced and mechanisms need to be discussed and created with the Transport Industry for future regulation.