Transporters against E-Way bill validity period reduction from January 1

Transporters' apex body AIMTC on Tuesday said it is against reduction of E-Way bill validity period from January 1, and said that the move will disrupt supply chain and create chaotic condition.

The All India Motor Transport Congress (AIMTC) is the umbrella body of transporters that represents about 95 lakh truckers and entities.

Acute adversities are faced by this sector and "there is yet another impractical scenario created from the government vide amendment in rule ...vide notification no 94/2020-Central Tax dated 22-12-2020, wherein the E-Bill validity period is halved. The said amendment is ill-informed, and ill-conceived. It is bereft of any consideration of the ecosystem of the road transport sector and is notified without any consultation with the stakeholders," the AIMTC said in a statement.

It said this amendment may result in disrupting the smooth flow of supply chain and create chaotic conditions by impacting even essential supplies including medicines and perishable items.

"The New Amendment in Section 138 (10) of the CGST halves the time period that is allowed for delivery of material. This is not as per ground realities and does not take into consideration the circumstantial reasons of delay and will open a pandora box leading to unforeseen conditions, disruptions and large number of non-compliances leading to disruption of smooth flow of supply chain," the AIMTC said.

It said different category of commercial vehicles carry cargo ranging from 500 kg to 42,000 kg and have different speed and different operating conditions.

Under the circumstances it said "validity of E-way Bill of one day for every 200 kilometer travelled is not practical... It takes transporters at least 4-5 days to collect goods from various agencies/suppliers and then carry it to the destined place" and cited various reasons like logistics challenges.

"Entire policy needs to be reviewed and need detailed deliberations in light of amendments in MV ACT, 1988 and mandatory FASTag from 01-01-2021. The reviewing of the permissible transit time in terms of e-way bill validity requires a detailed discussion and deliberation with all stakeholders for smooth & better compliance of legal procedures," it demanded.

It urged the government to do away with the amendment and restore the previous system of validity of bill for one day for every 100 km.