Published On: Tue, Jun 13th, 2017

Small Business Owners Anxious over Sales Tax Rule and E-way Bill

Small Business Owners Anxious over Sales Tax Rule and E-way Bill: –

Mitesh Prajapati, Director, Sameer Steel (Division Of Ramanlal Prajapati & Sons Steel India Pvt. Ltd.)

Concerning over failure to present provisions around E-way Bill and Sales Tax Rule under the new indirect tax regime of India – GST, small industry owners urge government for relaxed procedures and revised policies to protect their business. The introduction of E-way bill will make the prior online registration of moving of goods worth Rs 50,000 and over, a mandatory procedure.

“India is a huge market out there, a sale of Rs 50,000 per consignment is not an occasional incident, infact in industries such as steel & metals, businesses thrive on big turnovers and not on big profit margins. Thus, goods worth lakhs of rupees is sent for a consignment at once, to efficiently utilize logistics expenses. A small business owner cannot be expected to spend his valuable business time making online registrations and processing e-eay bills for each invoice that is over Rs 50000.”

Prajapati also expressed concern over lack of computer literacy and internet access in small business enterprises, resulting into making the practice of e-way bill futile.

Highlighting another distressing rule under GST is the sales tax, where the seller has to bear 18% GST that a buyer defaults paying, Prajapati said, “Small businesses have been suffering a blow of VAT evading buyers, but at 5%, the damage was still bearable, however, with 18% tax for the business that is surviving on a margin of 6-7%, the upshot of a defaulting buyer can a be major loss.”

Considering representation made by industries across nation, the Council has already revised GST rates for 66 items. However, the small business owners are still at unease over the implementation of E-way bill and Sales tax rule, thus praying government to bring viable solution before the regime rolls-out on July 1.

© 2014 Media N Press Communications. All Rights Reserved.
Subscribe to Infrabuddy Newsletter