Textile goods returned in huge quantities from Bihar and Uttar Pradesh due to lack of GST e-way bill

By

Isabelle Crossley

Published
Nov 3, 2017

Crates of fabric valued at several crores of rupees are being returned at the borders of Bihar and Uttar Pradesh as they do not have an e-way bill as required by new GST regulations.

According to the Federation of Surat Textile Traders’ Association (FOSTTA), approximately 30 percent of saris and dress fabrics in India are supplied to Bihar and Uttar Pradesh from other states but most of these deliveries are currently being turned away. This is because they do not have an e-way bill which was made compulsory for textile deliveries under the Goods and Services Tax introduces in July. However, there is some confusion surrounding the matter as, although the GST Council has publicly stated that this regulation should remain relaxed until 2018, local GST officials have been enforcing it strictly at the borders of Bihar and Uttar Pradesh.

FOSTTA has written to the Prime Minister and 250 MPs imploring them to address the situation as they argue that businesses are suffering. “A delegation of BJP leaders went to Delhi and met the Revenue Secretary on Tuesday. He [the Revenue Secretary] could have instructed the respective state’s GST departments to allow the goods without e-way bill, when they are going to introduce it in a phased manner by March 2018,” said Manoj Agarwal, the President of FOSTTA.

Agarwal also said: “GST implementation had cast a dark shadow on the textile trade. Traders were hopeful that the marriage season will spin their fortunes. But states like UP [Uttar Pradesh] and Bihar are not allowing our goods without e-way bill.” Traders are losing business which is especially pressing during wedding season when purchases of traditional wear are at their highest peak for the year.