The road ahead with GST

Cargo Talk - - Report -

Goods and Ser­vice Tax (GST), one of the big­gest tax re­forms, is near im­ple­men­ta­tion and the in­dus­try is ex­pected to ac­cel­er­ate the speed of freight move­ment and growth of freight vol­ume within, from and to the coun­try. The in­dus­try play­ers have heaved a sigh of re­lief as till now they were fac­ing se­ri­ous is­sues ow­ing to the huge cost bur­den on them. In this is­sue

CARGOTALK fo­cuses on the point­ers that need to be worked on to make GST a suc­cess and to get a bet­ter clar­ity on the bill from the govern­ment. The Cen­tral Board of Ex­cise & Cus­toms has also made cer­tain changes in the ware­hous­ing reg­u­la­tions, bond­ing of cargo as well as SVB and re­lated-party trans­ac­tions. The step has been taken to en­sure more for­eign di­rect in­vest­ment (FDI) in the coun­try.

On the air front, we touched upon the is­sues that work as hin­drances in turn­ing the coun­try into an air cargo hub and what is re­quired to learn from the over­seas hubs which have been suc­cess­ful. More­over, is there a need for In­dian airlines to start oper­at­ing freighters or will the en­hance­ment in belly ca­pac­ity be enough? GST is also go­ing to help in in­creas­ing the ton­nage and thereby the share of cargo moved by air.

The in­dus­try has seen a great deal of ac­tiv­ity, es­pe­cially as e-com­merce picks up pace, but it is still highly frag­mented. In­dus­try ex­perts talk about the global trends and prac­tices of e-com­merce sup­ply chain.

On the ship­ping front, the govern­ment is tak­ing many ini­tia­tives to re­duce con­ges­tion and grow­ing quan­ti­ties of cargo to be trans­ported thereby help­ing in the eco­nomic de­vel­op­ment. Lo­gis­tics com­pa­nies are also com­ing up with in­no­va­tive ideas for bet­ter­ment. For in­stance, Safe­d­u­cate has re­cently launched a con­tainer li­brary in Ajmer.

With the col­lec­tive ef­forts of the in­dus­try and the govern­ment, growth is on its way. The need of the hour is to look at the broader per­spec­tive with more in­no­va­tive ideas.

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