Single window, single law, single return
Rajesh BVC Logistics
“With the emphasis on ‘Make in India’ gaining momentum by the day, the government too will have to climb down a few notches to address contentious issues of ‘fixed tax rates’, one per cent tax on inter-state movement of goods, setting up of independent dispute redressal mechanism and some of which are fair concerns.
A host of LSPs have made preparations in terms of infrastructure network realignments to be ready for the advent of the trade scenario post GST rollout. Deferred rollout is be a huge disappointment.
With a deferment, the opportunity for reduction of logistics transaction costs in India is be lost and this is costly for the country as other emerging markets nations will benefit with investments and economy expansion opportunities.
The failure to rollout GST will show on the economic growth rate in the low single digits. Firstly, it erodes the confidence of the trade from the government. The investments done by the private sector will continue to give zero yields and in turn the capital costs business profitability.
This will also affect the preparedness of the government tax mobilisation mechanism as most of the state tax authorities have aligned already for the GST rollout on an imminent basis. in reduction in cost of doing business that is improvement in transaction cost.
All these improvements will make Indian products competitive in international market, attract investment in manufacturing sector,
some positive impact on global slowdown.”
R Jayakumar, Jayem Logistics
It’s unfortunate that such bills which are of common interest to nation get derailed due to political
Chairman, ambitions. It’s difficult to judge whether it will get implemented or not keeping the 2019 elections in mind. If GST is not rolled out, logistics service providers who have invested heavily in infrastructure will have to take the brunt. Then the possible solution to either leases out the infrastructure or consolidate business. Not only our industry but the nation will also suffer. As per one of the report, implementation of GST is likely to add almost 2 per cent per annum to our national GDP.
It is most unlikely that GST in its true form will be rolled out. GST coupled with ‘Make in India’ would have given a big impetus LSPs who have invested
in infrastructure will have to take the brunt. GST has the potential to reshape the taxation
Revenue loss due to lack of transparency and stringent taxes, unnecessary stocking points which add to cost, losses in implementing ERP/IT system due to multiple warehouses, heavy transportation cost in first and last mile deliveries and various tax burdens on end consumer. GST has the potential to reshape the taxation in India and bring more clarity and transparency into the system.”
Areef Patel, Vice Chairman, Patel Integrated Logistics
“With different stakeholders working at cross purposes, the passage of the uniform taxation structure remains a distant possibility.
If the bill is not passed, warehousing space will remain unutilised and will be a huge burden on the balance sheets of logistics players.
We have so far played the waiting game. We are well placed strategically to leverage the benefits of the new tax regime. As business like e-commerce and express delivery products which supports our business.
Logistics players will have to bear huge interest burdens on loans which they have taken for setting up infrastructural facilities. One of the main set back is tremendous increase in costs to client and also to the logistics providers. There is also a large amount of confusion among foreign investors as regards the future business environment in the country which can have a negative impact on future investment prospects.