The road ahead with GST

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.