Logistics sector to gain most from GST as costs will be down by 20%: Nitin Gadkari

Posted by Daily Shipping Times on 10-07-2017        Tweet

NEW DELHI: India’s logistics sector would gain the most from the goods and services tax as costs would fall by almost 20%, Road Transport and Shipping Minister Nitin Gadkari.

He added, Companies could do this with a hub-based warehouse system instead of having warehouses in all major consumer States. The checkposts at State borders have already been brought down. Karnataka, Andhra Pradesh and Tamil Nadu, along with 20 more States, have dismantled border checkposts, reducing hassles for trucks.

Several others are in the process (of doing so). The border checkposts have been removed even as States await electronic way bills, which will make truck movement easier. The e-way bill on GSTN (Goods and Services Tax Network) is expected to be introduced soon and will aid movement of trucks.

India is a growing economy and the high cost of logistics, currently at 14% of GDP, was having a negative effect. The average speed of freight transportation has been increased from the current 20-25 km per hour to 40 km per hour. Trucks that were earlier doing 200 km a day would do 400 km now.