How will the logistics be affected by GST?

The Indian logistics industry is fragmented and under developed. Logistics costs are relatively high due to poor physical and communication infrastructure; high dwell time at ports; low levels of containerization; and a multi-layered tax system contributing to significant delays at border crossing points. read more

3) GST will also bring in scale to logistics companies as there will be a lot of savings, stoppage of wastage and lower delays, 4) These above changes will lead to greater economies of scale for transport operators and lead to more companies outsourcing their logistics operations. read more

GST Could Help the Logistics Industry Reach its Potential. The Goods and Service Tax (GST) promises to integrate India’s multi-layered indirect tax system into a single unified one, unshackling India from its bureaucratic web and improving the ease of doing business. read more

Under GST, the tax on warehouse, storage and other labour services has increased from 15% to 18%. So a third-party logistics provider will now have more incentive to move towards the provision of services that have a high degree of value addition and where input tax credit can be claimed. read more