GST Impact: Trucks Begin Covering 10 To 15 Per Cent More Distance As Compared To Pre-GST Era

The transportation and the logistics industry is seeing some growth post GST era, trucks moving 300-350 km a day are now covering 400-410 km. The implementation of the GST and the e-way billing have seen the trucks cover 10-15 per cent more distance in a day than they used to in the pre-GST era.

This has helped reduce the cost of logistics even though when the industry is facing a slowdown both sequentially and annually.

Speaking to BusinessLine, CEO of Mahindra Logistics said that “The consumer-facing companies - FMCG, consumer durables — which were staying away from third party logistics and handled transportation and warehouse internally or through clearing and freight agents, have now started having large distribution centres. They are now outsourcing warehousing and last mile transportation to third party logistics players.”

The GST implementation has also seen new opportunities in the area of sub-assembly of auto parts. The pre-GST era involved putting together two to three parts within the factory in accordance to the excise law. Now with the new GST auto-makers can store parts and even assemble them.