How GST Will Impact The Logistic Industry In India

The logistic industry in india was estimated to be around 130 billion in the year 2013. It has grown exponentially in the last few years . The growth of the industry can help india to achieve the goal of becoming manufacturing hub.

The logistic companies in india have evolved from being first party logistic providers to being the integrated fourth party logistic provider . The fourth party logistic providers are those companies that have entire chain of logistics from transportations , warehousing to distribution , consultancy in management and having advanced supply chain facilities on the ground . The government have taken steps to help companies release their potential . The latest step of the government to implement the GST , goods and service tax , is to make whole country a major single market by eliminating multi layered tax structure . The aim is to unshackle india from bureaucratic web and unleash the power of individuals and corporates to generate economic activities .

The proper implementation of the goods and service tax will reduce the transportations costs . Increase warehouse capacities and enhance supply chain decisions . All these steps will increase business for logistic companies to make them catalyst in development of india .

At present the all state border checkpoints take lot of time in transportations and reduce the supply supply cycle of trucks . The material checking and tax compliances often are done by illegal transfer of money to the inspectors at the checkpoints . The reduction in International Parcel Service In Kandivali number of checkpoints and less tax will smoothen the flow of goods and parcels within the country . This change will make logistic companies to delivery goods more efficiently and increase the frequency of trucks for more business . The cost of the parcel and packaging will also come down as companies will not have to pay more tax at the several checkpoints .

It is estimated that reduction in delivery time will bring down the distribution cost by at least 10 – 15 percent , thereby reducing the final price of the good .

If petroleum is also brought under the GST regime , then logistic companies will have a strong reason to welcome and celebrate the GST move . But there are reports that petroleum will be exempted till some time to the date announced by the GST council .

The draft and rules of the GST wil actually decide the impact on the supply of goods and services . However , the implementaion International Parcel Service In Borivali of new tax regime will create vast space for the growth of logistic companies .