GST Impact: Trucks Begin Covering 10 To 15 Per Cent More Distance As Compared To Pre-GST EraContainer trucks waiting at JNPT, Navi Mumbai, Maharashtra (Picture: Nhava Sheva Container Operators Welfare Association)

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.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement