Home > Impact of GST on Logistics Industry

Impact of GST on Logistics Industry

The inception of Goods and Services Tax has cut the first turf towards streamlining the logistics industry in India. Previously, all states, within the country taxed goods, which were transported across at different rates. In a nutshell, the state authorities performed a comprehensive check of the goods, and levied an appropriate tax on the freight, which caused a dramatic increase in delivery time. Consequently, a significant transportation is lost in transit.

The most crucial advantage of GST is that it is now, a single tax on manufacture, sale and consumption of goods and service all through the nation. The purpose behind this move is to achieve the vision of India, as a unified common market, with only one indirect tax. On the basis of input tax credit method, GST will be collected at each phase of sale or purchase of goods or services. The subsuming and elucidation of taxes would mean that inter-state transportation of goods will become a notch efficient.

In the previous tax structure, delay in freight transition because of in numerous state taxes resulted in logistics costs, being shot up by 2 to 3 times, as compared to the set global standards. In succinct terms, logistics cost in India makes up for 13% of the GDP, as compared to 8% in western countries and about 18% in china.

However, the incorporation of GST, has paved the way for India, to become a seamless market for intra as well inter-state sales. This is a big boost for the logistics as it will alter, or completely change the prevailing ineptness in the industry, face-lifting the logistics scenario in India. Services providers can now operate large central warehouses and are free to remodel transportation routes.

Furthermore, competent taxation at national level and efficient cross-state transportation, along with drastically reduced paperwork for transporters, is bound to reduce logistics cost. GST, which was deemed to be the biggest tax reform India has ever witnessed, seems to fit the title.

Comments “Impact of GST on Logistics Industry

  • vinay chandra lalkarn
    August 13, 2017 6:46 pmReply

    It is not clear about process and requirement,either intra or inter states.

Leave a reply

*

Related Post

Smart and Secure GST Filing Software Online in India – GreenGST

GST India is a comprehensive tax on manufacturing, sale and consumption of goods and services at national level, under, which no distinction will be made between, goods and services for levying of tax. GST India has subsumed almost every indirect tax, levied on goods and services by the Central and State governments in India.

GST has a G2B portal for taxpayers, to access the GST System, seeking to file their GST returns. However that would not be the only way, for interacting with the GST India Services, as the taxpayer, pertaining to his preference of third party applications, for instance GreenGST, will be able to interact with the GST system, seamlessly, sans any hassle via desktop, mobile and other interfaces.

The Advent of GST has paved way for modern SAAS based software’s, to facilitate your tax filing management. Therefore, to handle the great number of invoices that will be uploaded and GST returns that will be filed, every single day, there arises a great need for reliable GST filing software that will chisel out your GST filing woes, all at once! This is where, innovative SAAS based GST Software, such as GreenGST, wade their way to decongest the scenario of GST filing in India.

GreenGST, a product by Moglix, is a one stop-solution for meeting all your GST compliance needs. We extend our expertise in commerce, manufacturing and supply chain to solve problems related to digitization of supply chain as well as making it GST Compliant. Green GST makes your GSTR filing seamless irrespective of whether you are the buyer or the seller.

GreenGST helps you in reporting, invoice creations, reconciliation and GST filing. Our system will not only keep you GST compliant but it also comes with a dashboard based on daily analytics. It will gently remind you five days prior to the deadlines, so that you can download the report on non-compliant vendors and be safe from the hassle of last minute rush.

GSTQuiz

Test your GST readiness with this fun and interactive checklist!