The FMCG sector is one of the biggest in India. With over ₹500 billion market spread across the nation, this sector was also brought under the GST regime. The FMCG sector includes daily products which are used by a common man, like, soft drinks, fruits, vegetables, soaps, etc. But before we proceed with impact of e-Way bill on FMCG sector, let us first consider the situation of FMCG sector before GST’s launch.
FMCG Sector before GST Launch
Before GST was launched, the FMCG sector was dealt through complex taxation procedure. This included taxation under various levels which included state tax as well as central taxes. The goods were passed through various middle men and eventually there was a big difference between output price of the manufacturer and purchase price of the consumer.
Moreover, fluctuation taxation system made it even more difficult for traders to trade normally. Eventually the scenario gave rise to grey markets where goods were smuggled.
Impact of e-Way bill on FMCG Sector
e-Way bill has brought uniformity in inter-state transfer of goods. Since its implementation, there has been a central management system where goods can be transported from one state to another via e-Way bill. If there are multiple goods in the same vehicle, then a single e-Way bill is sufficient to acknowledge all.
When will an e-Way bill be required?
An e-Way bill will be required if the value of consignment is greater than ₹50, 000 or more during an inter-state transport. If the value of goods is less than ₹50, 000 or falls under the exemption category, then no e-Way bill is required.
Can multiple FMCG goods be transported through one single e-Way bill?
Yes, multiple FMCG goods can be transported through one single e-Way bill, provided they all are being transported through a single vehicle.
NOTE: If the value of transported products is ₹50, 000 individually, then e-Way bill will be required. If none of the products have a value of ₹50, 000, but together they are more than ₹50, 000 then e-Way bill will not be required.
Can I cancel an e-Way bill?
Yes, an e-Way bill needs to be cancelled within 24 hours from the time of its generation by the consignor. The e-Way bill can also be cancelled by the recipient within 72 hours from its time of generation.
How can e-Way bill be generated?
e-Way bill can be generated through many ways-
- FMCG ranks 4th in largest sector of Indian Economy
- The FMCG sector is divided into 3 main categories – Food & beverage, healthcare and household and personal care
- FMCG has showed a significant growth from 2011 ($31.6 billion) to 2016 ($49 billion). It is expected to reach $103.7 billion by 2020.
- 8% growth in revenue from FMCG in Oct-Dec 2017 (post GST implementation). It is expected to grow by another 11.8% by Q4 March 2018.
- Eway bill government eases norms for FMCG eCommerce Companies
- GST impact on FMCG: Beneficial, but contentious issues remain