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Traders find ingenious ways to avoid paying GST

Bizmen are now transporting goods illegally through private bus operators

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A man loading goods to be transported inside a private bus
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Traders across the nation have found a unique way to not pay the Goods and Service Tax (GST). With transporters demanding GST enrolment numbers to supply goods, traders are now turning to private passenger bus operators to secretly transport goods from the Capital to other parts of the country.

Bus operators say on condition of anonymity that their buses start from Kashmere Gate or Anand Vihar and travel overnight to selected destinations for which they have doubled fares for the passengers and imposed a limit of two suitcases per person. This, they say, ensures that there is more space for the goods.

So how do the traders manage? Sources say that the traders are mostly accompanied by family members and friends so that more suitcases can be accommodated. But again bus operators say, such traders take unusual measures to ensure that they are not caught during a surprise check.

"Most of the traders decide to carry their goods in fancy bags and suitcases, so they look like normal passengers carrying luggage and not goods," says a bus operator on condition of anonymity.

Whatever the traders may think, bus operators are very happy as it means increased revenue for them, and their employees. Rakesh Sharma, an employee with one such operators says that GST has brought only good things for them.

"Nowadays, we earn more by transporting these goods than by transporting humans. We are earning profits from carrying these goods only while passengers are just an added bonus for the company. GST has brought good days for us," he said.

However, while the bus operators may be happy, transporters across the Capital are not, as they have seen a sharp decline in their revenues. "Before GST our trucks used to travel for over 100 times in a month but since July 1, we've had to fire half of our staff. In fact from July 1, only two trucks carrying goods have left for Kashmir," said Manohar Lal who owns a transport agency in Sadar Bazaar.

Lal hopes that action will be taken soon to crack down on these errant bus operators so businesses like his can return to normal.

Analysis

Traders have survived on the kacha bill system for a long time. This is when a bill was issued to the consumer but not put in the books, so as to avoid tax. The success of GST relies on the government incentivising and rewarding honest traders so that those who are dishonest will not look into ways to try and avoid paying tax       

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