The small and medium enterprises in Uttar Pradesh has blamed the Yogi Adityanath’s government for breaching the spirit of ‘One Tax, One Nation’ theme of GST. The government out there has mandated the e-Way bill for goods of smaller value.
Under the new tax regime, the government introduced the e-Way bill for the movement of goods above the value of ₹50,000. But the Yogi government has mandated it even for transporting goods of the value of ₹5,000 and above.
Micro, Small and Medium Enterprises (MSME) chamber, Indian Industries Association (IIA) claims that it would hit the state’s small and medium businesses hard while impairing their competitiveness as well. Regarding which, the IIA has submitted its representations to the GST Council chairman, Centre, UP finance ministers, UP Tax department. It also urged the state government to withdraw the implantation of the e-Way Bill system itself before October 2017.
IIA said, “While e-Way Bill system has been implemented, the software and allied paraphernalia are still not in place or fully functional”.
The MSME space in UP is estimated at over 4 million units and the sector contributes almost 40% to the state industrial output. It accounts for the maximum number of employment opportunities in the state after agriculture.