E-Way Bill to Boost Market for Organized Players, but Glitches Make Roads Bumpy

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Organized wood panel manufacturers were jovial with the announcement of E- way bill from Feb 1st. The wish to be organized category were also smiling across building material segment including wood panels and furniture items. It was observed that price gap between organized and unorganized players in plywood and decorative laminate category has shrunk within a month of an announcement of state wise E-way bill implementation like in UP, MP, Karnataka etc. But, the landed price gap has widened due to unorganized players are back to old ways post differing E- Way bill system announcement. The GST collection has reversed upward but building material segment is not seeing any light of hope.

The E-way bill for inter-state movements implemented from February 1 has been suspended after the crash of GST portal due to heavy load and rush for filing. Currently those players who were prepared for GST and hoping for a positive impact are on backfoot because of cheaper products, hence losing their markets. The confusing scenario is a troublesome phase for organized players till E-way bill is fully implemented. At present every product category is witnessing largely devided in two type i. e. ‘With full GST’ and ‘Without GST’. The unbilled materials are very cheap hence badly impacting the balance in markets. Currently road to level playing field looks bumpy till GST is completely implemented.

The organized wood panel companies of different states have urged their states to implement E-way bill in their state so that undue advantage taken by unorganized players bypassing on tax gains and reducing prices without any basis can be kept under check. The Ply Reporter believe that actual gain will be reflected once it will be implemented in entire country which is expected by June 2018. Experts and Industrialists are very much hopeful after implementation of E-way bill system and opined that the real benefit of GST will come in last quarter of FY 2017-18.

After the interstate E-way bill, the intra-state movement is to be implemented from June 1. According to government officials, states have been given the option of choosing when they want to implement the intra-state e-way bill between February 1 and June 1. 13 States such as Andhra Pradesh, Arunachal Pradesh, Bihar, Haryana, Jharkhand, Karnataka, Kerala, Puducherry(UT), Sikkim, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand have agreed to implement e-Way Bills for Intra-State movement of Goods with effect from 1st February 2018.

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