India’s logistics sector to gain most from GST: Gadkari
Government has said GST has benefited the transport sector with trucks covering greater distance after GST was implemented.
Road Transport and Highways Ministry said, each truck now covers 100 kilometres more than what it used to cover pre GST.
It said, the unified tax regime has obviated the need for inter state check posts and this will reduce the travel time of long-haul trucks and other cargo vehicles by at least one-fifth. The Ministry said, efficient freight movement will also boost the demand for high tonnage trucks, which will in turn reduce the cost of transportation of freight.
It said, pre- GST, the statutory tax rate for most goods worked out to about 26.5 per cent and in Post GST most goods are expected to be in the 18 percent tax range.
Road and Transport Minister Nitin Gadkari has said, country’s logistics sector will gain the most from GST as costs would fall by almost 20 per cent. He said, logistics parks are being set up at various places across the country to act as freight aggregation and distribution hubs.
These logistics parks will enable long haul freight movement between hubs on larger sized trucks, rail and waterways. Gadkari said, this will not only reduce freight transportation costs, but also throw open many employment opportunities and reduce pollution levels.