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.