Shout out to all Startups that are getting goods into Karnataka. Prioritize e-Sugam to the top 5.

e-Sugam and VAT registration for startups

Why am I even talking about this?

Well what happened in the most recent past was worth noting, this E-commerce startup based out in HSR layout Bangalore was importing goods from China, all set and done tools received successfully in Chennai and from there it was scheduled to be delivered to Bangalore office via road transport. But, goods did not move because one document was missing and that was e-Sugam.

What is this e-Sugam? Well, now you are talking.

Commercial Taxes Department in Karnataka has set up check posts on commercially important roads to keep a vigil over goods vehicles passing through, to ensure payment of taxes on corresponding transactions. The department introduced the concept of E-Sugham.

  • It is mandatory for every dealer to inform the department about a goods movement transaction (bulk) prior to commencement of the goods movement.
  • The dealer can inform the department by uploading the details in the format available on CTD website.
  • On upload of details, the system validates and generated an e-Delivery note. The dealer was required to carry three print outs of this electronic delivery note as original, duplicate and triplicate.
  • Since print outs were difficult to obtain by some dealers, the e-Delivery Note process was reformed to e-Sugam.
  • Under e-Sugam, the system on receipt of transaction details from the dealer, validates and generates a unique number called the e-Sugam number. This number then becomes the passport for the transport vehicle at the check-post.
  • The e-Sugam number is presented by the transporter to the check-post officer.

The enforcement officers are also no longer required to carry voluminous documents rather, they can obtain dealer wise information on the system and carry printout of only the doubtful transactions and cross verify the same. Note, this must be done every time there is goods movement into Karnataka by the dealer.

So, how to register for e-Sugam?

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