GST and HCVs

Heavy com­mer­cial ve­hi­cles seem set to gain from GST.

Commercial Vehicle - - WHAT'S INSIDE - Story by: Bhushan Mhapralkar

Heavy com­mer­cial ve­hi­cles seem set to gain from GST.

The pres­ence of Tata Signa 4923.S prime mover on In­dian high­ways is grow­ing. It is re­flec­tive of the growth of value trucks that are mod­ern, safe and com­fort­able. The Signa 4923.S is how­ever not the only one. In 2017, the HCV seg­ment saw many new in­tro­duc­tions. Hint­ing at a shift to­wards higher ton­nage, new HCVs hit the road. Some of these were the MAN 49.300 Evo 6x4 prime mover, the Eicher Pro 8040 6x4 prime mover, the BharatBenz 4928T 6x4 prime mover, BharatBenz 4023T 4x2 prime mover, Eicher Pro 6040 4x2 prime mover, and the Eicher Pro 5035 4x2 prime mover. The list of new rigid HCVs that were in­tro­duced in 2017 is no less sig­nif­i­cant. In the 2017 cal­en­dar year, 321,319 M&HCVs were sold ac­cord­ing to the So­ci­ety of Au­to­mo­bile Man­u­fac­tur­ers (SIAM). The least sales were recorded in April 2017. A mere 10,602 M&HCVs were sold. If the ef­fect of de­mon­eti­sa­tion lin­gered, the mi­gra­tion to BSIV hap­pened in April 2017. Al­most a month later, Goods and Ser­vices Tax (GST) was im­ple­mented.

The GST ef­fect

The im­me­di­ate ef­fect of GST was the abol­ish­ion of bor­der checks. It brought good news to long-haul trans­port op­er­a­tors. They could look at clock­ing bet­ter turn around times. As busi­nesses tried to fig­ure out new ways of pay­ing taxes and do­ing pa­per­work, cargo de­liv­er­ies dwin­dled. De­spite the abil­ity to clock bet­ter turnaround time, many fleet op­er­a­tors with left with much less to carry. The in­for­mal part of the trans­port in­dus­try went into a tizzy. The task of added pa­per work would need to be looked at. The ones that fig­ured out a way to fit into the GST frame­work stayed in busi­ness. They came to be a part of the or­gan­ised trade. Its been six months after GST was im­ple­mented. The tax re­form is putting CVs in the fast lane of ton­nage growth. HCVs es­pe­cially. The changes in the lo­gis­tics in­dus­try driven by the GST will keep de­mand for large (>25 tonne) HCVs buoy­ant, it is said. Their ton­nage growth is ex­pected to be at 10 per cent over the next two-to-three years com­pared to three-to­four per cent growth fore­seen for their lighter coun­ter­parts

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