Cargo industry positive about GST roll out

The Goods and Services tax (GST), which aims to subsume most of the indirect taxes with the objective to lead the country towards ‘one nation, one tax,’ is almost ready for roll out. The government has kept large number of items under 18 per cent tax slab. Post GST implementation, most FMCG companies will be able to generate substantial savings in logistics and distribution costs as the need for multiple sales depots will be eliminated. Presently, FMCG companies pay nearly 24-25 per cent taxes including excise duty, VAT and entry tax. With a tax rate of 18 per cent under GST, there could be a significant reduction of six to seven per cent in taxes.

According to the new GST Bill, Arun Jaitley, Finance Minister, Government of India, mentioned that road transport, air transport and rail transport will come under five per cent slab. Broadly, the GST regime will usher savings on logistics and will encourage the industry to be more organised. Industry veterans shared his views on the same.