GST, fi­nally!

Cargo Talk - - Report -

Iron­i­cally, the much-de­lib­er­ated Goods and Ser­vice Tax (GST) rolled out in the coun­try and In­dia be­came one of the 160 coun­tries to adopt a ‘uni­fied’ tax. On one hand, where the in­dus­try was ex­cited about the sim­pli­fied tax struc­ture, on the other, it wit­nessed a few hic­cups in busi­ness for the first few days. Even though the ware­hous­ing (or­gan­ised) sec­tor is to gain more busi­ness from the tax regime, the for­warders are wor­ried about the ap­pli­ca­tion of GST on in­ter­na­tional air freight. The gov­ern­ment still has to clar­ify nu­mer­ous queries on the tax regime. GST will en­able ware­hous­ing to re­lo­cate from far-off places to zones which are closer to cus­tomers. On the ex­press lo­gis­tics in­dus­try front, the in­dus­try seems op­ti­mistic with the over­all re­duced cy­cle time and the con­sid­er­able cut down in lo­gis­tics costs in the In­dian econ­omy. As the in­dus­try moves fast to­wards digi­ti­sa­tion, GST will have a sig­nif­i­cant im­pact on the ship­ping in­dus­try. Ex­ports are zero-rated sup­ply, while im­ports are charged at the same rates as those on do­mes­tic goods and ser­vices, sticking to the des­ti­na­tion prin­ci­ple.

Other than the new tax regime, the in­dus­try is also ad­dress­ing the need for in­te­grated lo­gis­tics to bring down the lo­gis­tics costs, pro­cure ef­fi­ciency and bet­ter ways of do­ing busi­ness.

also gives an in­sight on chal­lenges and op­por­tu­ni­ties in the hu­man­i­tar­ian lo­gis­tics sec­tor.

There is no doubt that the coun­try’s lo­gis­tics sec­tor is grow­ing. The growth signs are there, bet­ter per­for­mance will not only en­hance the busi­ness but also help pro­grammes like ‘Make in In­dia’ and ‘Ease of Do­ing Busi­ness’, among oth­ers.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.