Elimination of inter-state check posts after the GST (Goods and Services Tax) implementation, has reduced the time for movement of goods by 30 per cent and saved crores of rupees said Prime Minister Narendra Modi on his speech on Independence Day. It has been one month since GST was implemented and its benefits are already visible.
GST has unified more than a dozen central and state levies; its rollout from July has increased efficiencies of business. PM Modi said technology has made the rollout smooth in a short span on time while addressing the nation from the Red Fort on the occasion of 71st Independence Day.
In previous tax system, maximum time and resources of the transport sector were used in maintaining paperwork and different tax rates of states which used to create more delay in deliveries. As a result, cost of transport is 2-3 times higher in India in comparison to global standards, which has contributed in inflation as well.
GST the biggest tax reform after independence was rolled out from July 1 2017, started showing beneficial impact on transport and logistics sector. New indirect tax reform has eliminated dozen of state and central taxes like service tax, VAT and excise duty, replaced them with four tier tax structure for goods and services across the country.
GST (Goods and Services Tax) implementation is leading towards clutter free highways and low pollution level due to increase in speeds of the trucks. Now, goods transportation is much faster. Most positive impact of GST is on economic progress of the country.
“Doing business has become so much easier. And most important of all, the trust of customers for the traders is increasing. I have been observing how GST has impacted the transport and logistics sector; how the movement of trucks has increased. The time required to cover distances has come down drastically. The lofty dream of One Nation- One Tax has finally been fulfilled. In the matter of GST I have seen how everyone, right from the Government functionaries at the Tehsil level to the officers in the top echelons of Government of India have toiled tirelessly with great dedication,” PM said.
PM also mentioned just after 45 days of GST implementation considerable reduction in cost of basic necessities, is a fine example of the collective strength of the people of India. This is a historic achievement. And this is not just a tax reform; it is a new economic order that will strengthen a new culture of honesty. In a way, it is also a campaign for social reformation.
Government proposed E-way Bill which is set to ease the movement of freight. Goods worth more than Rs 50,000 will require online registration and the receipt would act as a goods ticket for the entire journey.
According to experts, logistic sector will gain the most from GST as it will help to reduce cost further and which is quite visible within first month of implementation. 15 lakh new registrations happened within one month and more than 71.30 lakh tax payers have migrated to the GSTN.
