GST and Logistics sector
The implementation of the (GST) goods and services tax ushered in much-needed modify in India’s largely unorganized logistics and transport sector, and helped speed up movement of trucks, according to industry executives.
The switch to GST tax led to at least 20% reduce in turnaround time of trucks after border check posts were dismantled. Besides, the implementation of the electronic-way bill on shipping consignments of Rs 50,000 and above was gradually freeing the transporters from unnecessary checking by state government raid parties.
However, the full benefits of nex taxation method would only be realised with continuous passage through the presently clogged toll gates, along an end to harassment by state transport and tax authorities. The impact was much more in Madhya Pradesh, Uttar Pradesh, Bihar and Maharashtra, which were particularly difficult states for truckers to move throughout the year.The turnaround time in road transport reduced to from earlier phase with 18-20% since implementation of GST.
A lot of states were late in implementing the e-way bill. “Maharashtra and Punjab implemented it only recently. It would take around one more quarter to fully assess impact. Also, each state department continously tries to create hurdles in movement of truck.The government should also rationalize GST on transport services. The Logistics sector had benefited most from GST. Travelling time of trucks has come down significantly low as the country has become like a global market along with removal of border check posts in states. Ease of transportation has been the focus area.The logistics sector companies are also making efforts to keep up with the pace of the increasing growth in the demands by using technology and by digitizing their end-to-end solutions and are also providing with high-end online freight services. For real time-tracking, the companies are initiating services like GPS- global positioning systems, bar codes and even radio frequency identification
The tax on the logistics sectors will bring in benefits, especially the tax collections will increase drastically for both the centre and the states.
The emergence of digitisation and the GST system have made the logistics companies in India transit from indirect taxation to a systemised one tax system, this is not just benefiting the warehousing industry but has also significantly reduced the logistics cost, the cost has almost been gone down by 2.7 per cent. This initiation has brought a lot of improvements and will significantly bring Improvements in both the freight forwarding and transportation of all types.
while the country is already moving ahead there has been an increase in the invasion of LSPs which are the International Logistics service providers who are initiating third-party logistics as well as domestic LSPs. This is expanding the footprints and attention on transportation services, freight forwarding, and warehousing. This also improves the relationship between the countries and opens up many opportunities for not just business partnerships but a chance for all the domestic logistics companies to have an access to modern technology which is already being provided by global service providers. The services in India will highly be benefited starting from the development of their transportation system to their infrastructure related to transport and logistics courses in kerala. Warehousing zones, freight station, freight corridors, free- trade warehousing zones and of course port modernisation.
So many academic goals that we expect you to achieve.