There were enough debate about GST and its implementations. Though there are some teething issues, over all its yet an another reformation in post the independence. When Indian market was opened to world during 90’s, there were enough cry to call, Globalisation will kill Indian merchants and manufacturers. But in reality, we have improved our competitiveness and inturn, we are now looked as a source for skilled production base. Similarly its now GST, which will be taking India to next level in coming years. We are very much excited about the GST because, this is likely to have a considerable impact in a way goods are transported.
Indian logistics industry which account for as much as 14% of GDP as compared to 8.5% for US, as per Phillip Capital study, will have a sizeable difference in the way its going to operate. Primarily, border less goods movement will make a “sea of change”.The Economics of truck business model will have a positive impact, as the truck turn around time will be much lesser and will increase the truck utilisation level considerably.Currently as many as 22 states have abolished border commercial tax checkposts after the rollout of goods and services tax (GST) on July 1, marking a big step towards ‘One nation, one tax’ goal of this reform.
Impact on Driver community
When the goods were earlier scrutinised in check posts, it was not a “cat walk” for drivers. They need to wait for hours before their turn arrives, face the harassment of officials, bribe them unconditionally and it took more than a day in many locations. Walayar, a check post between Tamil Nadu and Kerala was one of the lowest rated in terms of turn around time for checking. Due to exorbitant delay each time, it even lead transport companies to call for strike, citing huge delay in the border every time. Officials from Kerala intervened and ensured delay will be reduced, but still there wasn’t any difference in reality. This is similar scenario across many states. Due to this delay, many times drivers need to wait for more time in the check post, cook their food in the road side and stay there until the papers are cleared. This causes enormous stress among the driver community.
Currently after July 1, the states including Gujarat, Bihar, Karnataka, West Bengal, Tamil Nadu, Haryana, Kerala, Madhya Pradesh, Uttarakhand. Eight states including Assam, Himachal Pradesh, Manipur, Meghalaya, Nagaland, Punjab, Mizoram and Tripura are in the process of abolishing their checkposts, an official statement said on Monday. “The Goods and Services Tax (GST) was rolled out on 1st of July 2017. With the rollout of the GST, 22 states in India have abolished their checkposts,” the statement said. Many states have also issued advisories to field to not stop trucks.
Now, with the check posts being eliminated, the driver community will the first group to appreciate it and will see the benefits immediately. Now they go can home quickly, drive more so their wages can also increase considerably. Seamless transport is expected to cut transport costs, which will help make goods cheaper. In India, goods are largely transported by the most costly mode, roads, and the state boundaries escalated that costs.