Punjab to relax norms for intra-state goods’ movement

Shivani Bhakoo/Vijay C Roy

Tribune News Service

Ludhiana/Chandigarh, August 28

The Punjab government will soon allow a hassle-free movement of textile items for job work within the state and save thousands of small and medium enterprises (SMEs) from the trouble of getting e-way bills by enhancing the exemption limit from Rs 50,000 to Rs 1 lakh.

Textile and apparel value chain thrives on job works, which was hampered because of mandatory e-way bill requirement for items valued more than Rs 50,000. An exemption from mandatory e-way bill will help textile clusters in Ludhiana, Amritsar and Jalandhar.      

“A decision has been taken on this matter. It will be implemented after the government issues a formal notification, which is expected soon,” an official source said.

Under the Goods and Services Tax (GST) rules, ferrying goods worth over Rs 50,000 within or outside a state requires securing an electronic-way challan (e-way bill) through prior online registration of the consignment. States can tinker with e-way bills only for intra-state movement of goods.

“We are going to follow the Maharashtra model, which has already abolished requirement of e-way bill for transportation of hank, yarn, fabric and garments meant for job work,” the source said. Officials, however, say the Punjab government may trim down the number of items. Maharashtra gave relief to its textile industry from July this year, which allows intra-state movement of specified items within 50 km for job work.  

Officials said, the Punjab Cabinet gave its nod to allow hassle-free movement of textile goods meant for job work and also extended the limit of intra-state e-way bill from Rs 50,000 to Rs 1 lakh on Monday. Tamil Nadu, Maharashtra and West Bengal are among other states to raise such limit.

Punjab Pradesh Beopar Mandal president Piara Lal Seth said the proposed move would help the traders and manufacturers from un-necessary burden and paper work.

“The textile and garment industry is largely dependent on knitting, embroidery, printing and dyeing units, but all job workers are not that well-educated. They were facing problems in generating e-way bills. The decision of the state government will provide a sigh of relief to them,” said Superfine Industries’ managing director Ajit Lakra.

The government’s decision is also prompted by the fact that several people were avoiding generating e-way bills by using horse-carts (tongas) for transporting goods as non-motorised vehicles do not require e-way bills for transporting goods.

“Many industrialists had started transporting furniture, yarn, ready stocks above Rs 50,000 through the tongas to avoid e-way bills/taxes. Respite will be given to those who are doing business in a transparent manner,” said Federation of Punjab Small Industries Associations (FOPSIA) president Badish Jindal.

e-way bill exemption 

• Total exemption for textile job works
• Bill not required for goods up to Rs 1 lakh
• Boost to SMEs of Ludhiana, Amritsar, Jalandhar