GST ef­fect on air cargo sec­tor

At the re­cently-held Air Cargo Sum­mit 2017, the in­dus­try and se­nior gov­ern­ment of­fi­cial dis­cuss the growth and op­por­tu­ni­ties of air cargo lo­gis­tics in the cur­rent sce­nario of the ‘One Na­tion, One Tax’ regime.

Cargo Talk - - Report -

There has been a se­ries of changes, be it ad­min­is­tra­tive, pro­ce­dural, reg­u­la­tory, struc­tural, pol­icy, digi­ti­sa­tion or tech­no­log­i­cal so­lu­tions. The gov­ern­ment is al­ready look­ing into var­i­ous is­sues. First of all, the air cargo sup­ply chain need to be strength­ened. The sec­ond area, is the GST pre­pared­ness and im­ple­men­ta­tion. With GST, the gov­ern­ment wants to pro­vide a seam­less way of han­dling the air cargo sup­ply chain which strength­ens every seg­ment of the link. Air Cargo Com­mu­nity Sys­tem (ACCS) would pro­vide a plat­form to play­ers to ex­change in­for­ma­tion in a timely man­ner so that many of the clinches can be ad­dressed. Van­dana Agar­wal Eco­nomic Ad­vi­sor, MoCA, Gover­ment of In­dia

Over the last few years, the ease of do­ing busi­ness has be­come a big mantra. But the ques­tion re­mains, what ex­actly is ease of do­ing busi­ness; is it lesser reg­u­la­tions, lesser mon­i­tor­ing, more trust, or has it made the process sim­pler? The most re­gret­ful thing hap­pen­ing to In­dia is the re­sis­tance to change from the pri­vate sec­tor, and not from the bu­reau­cracy. We are hav­ing the po­lit­i­cal will to bring the change but it is the pri­vate sec­tor which is tak­ing back the gov­ern­ment with the is­sues. It is im­por­tant to un­der­stand that ease of do­ing busi­ness has to be ad­dressed with speed. It has to be ad­dressed with a change in the ba­sics; what­ever is not nec­es­sary can be ig­nored. We have to look at it as an op­por­tu­nity not as a de­ter­rent. Samir J Shah Chair­man, FFFAI

One of the sev­eral mea­sures that has been taken by the gov­ern­ment along with GST im­ple­men­ta­tion is that we are plan­ning to in­tro­duce elec­tronic seals, to be put in con­tain­ers, in a big way with re­spect to the ship­ping side. In the air cargo sce­nario also, there could be a sim­i­lar sit­u­a­tion, in re­spect to bonded truck­ing. The fo­cus of the depart­ment is to align all our IT sys­tem, both in the gov­ern­ment as well as the pri­vate sec­tor to the new GST regime. SP Sahu Com­mis­sioner (Sin­gle Win­dow), CBEC

The lo­gis­tics sec­tor in the coun­try, es­pe­cially air cargo sec­tor, is evolv­ing rapidly and it is the in­ter­play of in­fra­struc­ture, tech­nol­ogy and chang­ing gov­ern­ment poli­cies on tax­a­tion and reg­u­la­tion, etc. Lo­gis­tics pace is get­ting in­creas­ingly com­pet­i­tive. Presently, the In­dian lo­gis­tics in­dus­try is er­ratic and frag­mented with rel­a­tively high lo­gis­tics cost due to poor phys­i­cal and com­mu­ni­ca­tion in­fra­struc­ture, high dwell time, low lev­els of con­tainer­i­sa­tion and cus­tom chang­ing poli­cies. The in­dus­try is keenly watch­ing the im­pact of im­ple­men­ta­tion of GST from July 1, 2017. We are more than con­vinced that the new tax regime will speed up the na­tion’s eco­nomic growth and sta­bil­ity and take this op­por­tu­nity to im­prove the scope with this tax regime. How­ever, sim­pli­fi­ca­tion in the regime is much re­quired. Vipin Vohra Co-Chair­man, Civil Avi­a­tion Com­mit­tee, PHD Cham­bers

Un­der ease of do­ing busi­ness, we need to clearly un­der­stand; do we need to go into the depth of un­der­stand­ing about every prod­uct that we are ex­port­ing or do we gen­er­alise as we are do­ing. Also, the man­u­fac­turer is not di­rectly con­nected to lo­gis­tics un­til the point that man­u­fac­turer has cargo in his ware­house. Few changes that are re­quired to take place as we move for­ward are; firstly, the change in the pro­cesses which can be the big en­abler for us. Se­condly, more tai­lor-made so­lu­tions com­ing up in the process of han­dling cargo, be it from the per­spec­tive of the air­line, han­dler or for­warder. Fur­ther, we are go­ing to see con­stant tech­no­log­i­cal im­prove­ment and this will help us grow our busi­ness col­lec­tively. Most im­por­tantly we must be bench­mark­ing our­selves to the best in the world. Keku Bomi Gazder CEO, AAICLAS

In­ter­na­tional freight has to be out of GST.; it is not ease of do­ing busi­ness but just pro­ce­dural de­lays and more fi­nan­cial cost for ev­ery­one. This never has hap­pened, when there was ser­vice tax. There should not be GST on in­ter­na­tional freight be­cause no in­ter­na­tional freight is sub­ject to taxes all over the world. In­dian ex­porters lead in not to bur­den with roundly in­te­grated GST tax on in­ter­na­tional freight. We should not has­sle our buy­ers with GST im­ple­men­ta­tion on freight. Cyrus Kat­gara Part­ner, Jeena & CO

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