How is GST helping logistics?

Reduced Transit Time There used to be a lot of hassles which decreased the efficiency of the logistics. The implementation of a unified GST market has provided an increased efficiency. iThink Logistics said, that GST has helped them to ease out their virtual calling function and reduce their overall expenses.

What is the impact of GST on logistics?

The new tax reform GST reduces the transportation cycle times, enhance supply chain & turnaround time, lead to consolidation of warehouses, etc. Removal of inter-state check posts is most advantageous to the industry to improve the efficiency in terms of transportation and reaching destination.

Is GST beneficial for India?

Being the Biggest tax reform in India, GST will allow the real GDP growth of the Indian economy to hit 6.75 per cent in this fiscal year with expectations of 7 to 7.5 per cent real GDP growth in 2018-19. SMEs and small taxpayers have benefitted from the GST system with a number of relaxations.

What is the importance of GST in Indian economy?

The introduction of the Goods and Services Tax will be a very noteworthy step in the field of indirect tax reforms in India. By merging a large number of Central and State taxes into a single tax, GST is expected to significantly ease double taxation and make taxation overall easy for the industries.

What are the different impact of GST implementation on Indian logistics sector?

Transportation, warehousing, freight forwarding, and value-added logistics are the four main areas of the Indian logistics industry. The new tax reform decreases transportation cycle time, improves supply chain and turnaround time, and leads to warehouse consolidation, among other things.

Is GST applicable on freight?

If the freight charge is included, then GST on freight charges must be levied at the tax rate same as the rate charged on supply of the goods or consignment. However, as per the GST law, if the freight is exclusive and separately charged, then the GST rate on transportation service is 5\%.

What is the impact of GST on supply?

GST has a far-reaching impact on the business of any organisation. It not only alters the way taxation of goods and services takes place, the concept of intra state and inter-state supplies, to the method of taxation, system of allowance of ITC, quantum of ITC and to its accounting and filing of returns.

What is GST and importance of GST?

GST aims to replace all indirect levied on goods and services by the Indian Central and State governments. GST would subsume with a single comprehensive tax, bringing it all under a single umbrella, eliminating the cascading effect of taxes on the production and distribution prices of goods and services.

What is GST and benefits of GST?

GST is aimed at reducing corruption and sales without receipts. GST reduces the need for small companies to comply with excise, service tax and VAT. GST brings accountability and regulation to unorganised sectors such as the textile industry. GST points toward a positive impact on India’s GDP.

What are the proposed benefits of GST?

Advantages of GST Explained in Details

• Reduced Tax Evasion and Corruption Free Tax Administration.
• Procedural Benefits.
• Removal of Cascading Effect.
• Technologically Driven.
• Reduced Compliances.
• Higher Exemption Limit.
• GST and Make In India.
• Ease of operation for E-commerce businesses.

What is the importance of logistics industry in GST?

The compatibility of infrastructure, technology and various services play key role in the logistics industry to support the timely and safe delivery of goods to the consumer through a tangible supply chain. GST is introduced with the key goal to improve the Indian economy by reducing corruption.

Is India’s logistics industry worth $200 billion?

It comes as no surprise then that the Indian logistics industry is expected to surpass $200 billion by 2020, as per a JLL study.

What is GST and how does it work?

In short, GST seeks to simplify the tax regime of the country, via imposition of one indirect tax in India, thereby reducing a sizeable portion of the burdens borne by commercial participants in the field.

Why is logistics the backbone of the Indian economy?

As a sector that holds together a countless number of manufacturing and trading activities in the country on a daily basis, and is forever attempting to bridge the shaky gap between increasing consumption and timely supply, it would hardly be an understatement to consider logistics as the backbone of the rapidly shape-shifting Indian economy.