SIB to verify transportation of goods of less than Rs 50000 in UP to check avoidance of e-way bill

SIB to verify transportation of goods of less than Rs 50000 in UP to check avoidance of e-way bill or GST by issuing more than one bill 

Under the existing e-way bill scheme applicable in the State of Uttar Pradesh (UP), for transportation of goods valued at more than Rs. 50000/- from a place outside UP to UP, e-way bill 1 is compulsory. Similarly, for inter-state transportation and transportation from UP to a place outside of UP for few sensitive goods valued at more than Rs. 50000/- , e-way bill 2 is compulsory. Similarly, for e-commerce operator companies downloading of e-way bill 3 is compulsory.

Thus, it can be seen that, e-way bill scheme is applicable in UP for goods valued at more than Rs. 50000/-.

The GST Department (Commissioner, Commercial Tax) in a circular addressed to all Zonal Additional Commissioners/Special Investigation Branch has  expressed concern over the information received that the traders/dealers, in order to circumvent the e-way bill scheme, are issuing more than one bill of less than Rs. 50000/- in different names for avoiding the tax.

Verification of GST Bills of less than Rs. 50000/-

In view of the above, the circular directs as under:

(i) Through physical verification of the transport vehicle transporting goods with more than three bills each less than Rs. 50000/-

(ii) Compilation of bills of those dealers/traders who are transporting goods through bills of less than Rs. 50000/- and investigation of such traders be carried out by SIB on the basis of the compilation of such bills.

The circular further states that traders are also avoiding tax either by avoiding e-way bill scheme or by heavily undervaluing the goods. As per few reported instances, attempts are being made by declaring costly/btanded goods as being cheap/unbranded goods and tax is being avoided by drastic undervaluation in ready made garments/shoes.

In order to keep a check on such mal-practices, SIB has been asked to report details of transportation of goods/vehicles transporting goods of less than Rs. 50000/-.