Nitin Gadkari, Road Transport and Shipping minster of India claims that India’s logistics sector would gain the most from the Goods and Services Tax (GST) roll out. As he believes that there would be a fall by almost 20% in the cost due to new tax regime. Besides, addressing to the citizens of India he said that people can protest the government’s new tax policy if they have a problem but they should give government a couple of months for its proper implementation. Apart from that, he also criticized Congress government for their immature behavior towards the biggest tax reform since independence, GST.
According to the calculation made under GST, logistics costs would come done by at least 20%. Companies can easily achieve this by having a hub-based warehouse system instead of having many warehouses in all their consumer states. The checkposts of states like Karnataka, Andhra Pradesh, Tamil Nadu, along with 20 more states have already been brought down which will help in reducing hassles for truck.
The border checkposts have been removed even though states are waiting for electronic way bills that will make truck movement easier. The e-way bill on Goods and Service Tax Network (GSTN) is expected to be introduced soon and will aid movement of truck.