Organized logistics to get explored after GST

By Registrationwala

27th May 2017


There has been a report from the Rating agency ICRA that the arrival of goods and services tax (GST) system, there is a possibility of improvement in the supply chain time due to decrease in the flow of goods as the vet boundaries will be withdrawn. This agency said that the implementation of GST was a positive step for the road logistics area. After GST, the more efficient and organized logistics area is likely to emerge gradually.

The way GST system is likely to have significant impact on the logistics and storage of goods in the country. GST will have three major results on the logistics sector. First, the integration of stores and from there to the supply of goods in different directions, second, more tax compliance and create equal opportunities for the third express and traditional transportation services.

ICRA also said that since, two percent additional GST will be removed on inter-state sales of goods, in such a situation the storage will not be based on tax basis but will be based on demand; hence the consolidation of stores will be done. The agency hopes that steps will be taken to a system where fewer but larger trucks will be able to rotate between big stores.

Apart from this, the supply chain is expected to improve the flow of goods due to time constraints, because the vet boundaries will go away. This will reduce the stops in the truck by 15-20%.




Organized logistics to get explored after GST