GST for seamless transportation

The ability of GST to support seamless transportation by doing away with the need for transporters to spend their time and efforts getting permissions at every state crossing could be successful when paired with the Carriage Act. Industry sources claim that it would trigger marginalisation of fly-by-night operators among traders amd transporters whose business policy is to amass money through illegality. SP Singh, Senior Fellow and Coordinator, IFTRT, is of the opinion that electronic toll collection and virtual border check posts have the potential of enhancing truck transport thereby leading to a drop in turnaround time by a good 25 to 30 per cent. The implementation of GST in sync with the Carriage Act, 2007, and its rules, 2011, would enable planners to have reliable data of the movement of goods and services. With transportation industry, the largest service provider and service tax contributor, a rejig in vehicle ownership and a resultant drop in the number of vehicles followed by a move to higher tonnage vehicles (containerised) would lead to an efficient inter-modal transportation. With dedicated rail freight corridors being experimented upon, and impetus laid on coastal shipping and inland waterways, the outcome will be the lowering of manufacturing costs. The GST, as a standalone reform may not ensure the best results claim industry sources.