Impact of gst on logistics research paper

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Impact Of GST On Logistics Industry

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GST and Logistics – Impact and Implementation

Logistics sector in India is highly fragmented and yet to progress as a major contributor of an efficient supply chain. This sector has been primary bottleneck in driving the economic growth due to multiple taxes charged by authorities at interstate checkpoints and various toll booths throughout the country. The truck drivers in India clock an average of km per day. Much below the world average of km per day and far below the km which is the average distance covered by a truck driver in the USA every day. This is mainly due to archaic laws and multi-layered tax systems rather than bad roads or inefficiency of the driver. Multiple tax system also results in high logistics cost putting the extra cost burden on the consumers. The prevailing tax structure in the country is quite complex comprising of central imposed taxes in the form of customs duty, CST, excise duty and then there are varying state imposed tariffs in the form of octroi, entertainment tax, and VAT.
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Approx most of the day we heard about this Term GST, if we Recharge mobile current postpaid bill is Rs , we will have to shell out Rs It is Rs 15 more than what you are currently paying. Food, electricity, gold, land, loans in these services GST is applicable.
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The regulatory reforms proposed in the GST presents a golden opportunity to revisit, rationalize and re-engineer transportation and logistics networks. India is all set to usher in a game-changing tax reform—the goods and services tax GST. The regulatory reforms proposed in the GST presents a golden opportunity to revisit, rationalize and re-engineer transportation and logistics networks, given the inherent inefficiencies with taxes based on the crossing of administrative boundaries or border checkpoints. Taxation at a national level, rather than by each state, will result in more efficient cross-state transportation, streamlining paperwork for road transporters and bringing down logistics costs. As a result, freight that moves across the country is taxed multiple times.
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