Logistics Industry is one of the major drivers of Indian Economy. It contributes about 7% to India’s GDP. GST tax subsumes multiple indirect direct taxes into one single tax.
Impact of GST
The impact of GST on logistics industry can be broadly divided into 3 categories:
Due to change in the tax structure The services tax on transportation was 15%. However, Under GST, Tax has been increased to 18%. This change will slightly increase the cost.
Seamless movement of good across state borders At present around 60% of the total transit time is idle time. Idle time is mainly on account of stoppages at state borders where relevant papers are checked and taxes are as paid as per goods being carried. With GST, It is expected that the idle time would be reduced by 20% to 30% and shipment cost by 30% to 40%.
Increased Operational efficiency
The above impacts (a) and (b) will be common all across the logistics firms. It the operational efficiency for which firms would have to relook at their current business structure. CronJ can provide customized solution that can help you to realize the complete benefits of GST.
What CRONJ can offer:
An Integrated IT system that can help you synchronize movement of physical goods, information and financial information
Complete Supply Chain network remodeling and optimization to suite your current business
Route and Load planning system to increase operational efficiency
We are confident that our system will enhance your productivity and will enable you to bring down your input cost that will make you more efficient and cost competitive.