Uncertainty surrounding the introduction of E-Way Billing system in the country has left the plywood manufacturers in organised sector in confusion. Though the government had announced introduction of E-Way Billing system in the country for inter state transactions from February 1st, the decision had to be deferred indefinitely due to heavy load on the site. It is rumoured that the government is planning to re-introduce the system in March and the new software will have capacity to process four million transactions per day. However, no formal announcement has been made yet in this regard.
In the absence of E-Way Billing system, manufacturers in the unorganised sector are having a field day and most of the sales are happening without invoices. Even with reduced GST rate of 18% (vis-a-vis old rate of 28%) selling without charging GST gives lot of price advantage for the manufacturers in the unorganised sector.
Plywood manufacturers in the organised sector feel that E-Way Bill once introduced will take at least 1-2 quarters before the system gets stabilised. If it is introduced in this financial year itself, they feel plywood sales could grow in double digits in next financial year. Otherwise, they expect a moderate growth of just 5%. Introduction of E-Way Bill system will reduce the present price gap between unorganised and organised manufacturers. It may eventually pave the way for shifting of market share from unorganised sector to organised sector.
Nationwide e-Way Bill system is expected to bring uniformity across the states for seamless inter-state movement of goods. e- Way Bill is an electronically generated document required to be generated for the movement of goods of value more than Rs 50,000 between states. It is expected to check the rampant tax evasion and also result in boosting revenue.