Cargo Breaking News
S Ramakrishna, Vice Chairman, FFFAI, says, “It was more or less clear that there would an increase of 0.5 per cent on tax which meant from 4.5 per cent service tax to five per cent in GST regime. After the advent of GST there will be uniform tax rates across borders and state boundaries will no more be a parameter for deciding the routes. Multi modal connectivity would be the prime factor for warehouse operators, who eventually need to rejig the warehouse locations. This should lead to supply chain model in more robust and efficient manner. This will lead to rationalisation of selecting warehouse, transportation etc which would provide competitive advantage to the industry.”
“On the international trade, the government missed a great opportunity of Nil rate of GST from end to end supply like many countries in the world. The concept of reverse charges on international shipments on imports or payment of GST in export freight would definitely would have some measure of negativity especially knowing the refund process. The cost of otherwise competitive export market would also have some impact due to GST,” he added.
