1. GST impact on octroi check posts: Now empty barricades make Anand Mahindra take to Twitter, dub them clots, say GST is common sense

GST impact on octroi check posts: Now empty barricades make Anand Mahindra take to Twitter, dub them clots, say GST is common sense

GST impact: Within days of the passage of the Goods and Services Tax (GST), the once clogged octroi posts have emptied and clear traffic can be seen where once nothing seemed to move.

By: | New Delhi | Updated: July 3, 2017 10:17 PM
gst, gst impact, gst impact Anand Mahindra, octroi posts, clogged octroi posts, Twitter, twitter post, goods and services tax, gst Anand Mahindra, location-based tax, gst news Chairman and Managing Director of Mahindra Group, Anand Mahindra. (Photo: Reuters

GST impact: Within days of the passage of the Goods and Services Tax (GST), the once clogged octroi posts have emptied and clear traffic can be seen where once nothing seemed to move. These check posts scrutinise material and location-based tax compliance, resulting in delays in delivery of goods and cause environmental pollution as trucks queue up for clearance. Clearly, impressed with this sea change on roads and empty check posts, Mahindra and Mahindra chief Anand Mahindra took to Twitter to say, “Octroi was a clot blocking our economy’s blood flow. So, GST is common sense. For so long, common sense was Uncommon.”

Meanwhile, the Finance Ministry in a statement said that as many as 22 states have cleared their borders of all octroi check posts enabling for smooth flow of traffic between states. Delhi, West Bengal and Maharashtra have abolished check posts within three days of the implementation of the GST, while eight states, namely, including Himachal Pradesh, Punjab and Assam are in the process of removing these check posts, according to the Finance Ministry. One big advantage of the GST, which was seen from the planning stages was that it has the potential to reduce the logistics cost by speeding up movement of goods across state borders and even within states and thereby make the country’s goods and services more competitive

The Goods and Services Tax is an all-encompassing, pan-India indirect tax system. The new tax regime has cut out the cascade of multiple taxes which increase the price of items. Other states which have removed the check posts are Andhra Pradesh, Bihar, Haryana, Gujarat, Karnataka, Kerala, Tamil Nadu and Uttar Pradesh.

  1. K
    Kolsat
    Jul 8, 2017 at 11:59 am
    Decades ago some one in the government should have realised that these Octroi posts were nothing but places where money was given to officers to allow the vehicles carrying goods to go through without much scrutiny. But then again that someone also got a cut in those funds and therefore they ignored the delay and corruption Octroi posts fostered. GST will help faster movement of goods through state and district boundaries.
    Reply
  2. J
    Jagtani Prakash B
    Jul 4, 2017 at 10:33 pm
    Great job done by bjp govt. Borders delays and frustation of truck drivers avoided at last!
    Reply
  3. A
    Adil
    Jul 4, 2017 at 11:56 am
    s: /wgdqxYbTMLc
    Reply
  4. S
    Sundaram Ramchandran
    Jul 4, 2017 at 3:45 am
    That's what i thought would be one of the major benefits where the impact could be felt immediately. This should go a long way in smoothing the flow of goods services through out the country and making it more predictable and pave the way for JIT etc which would again help to reduce inventory levels, reduce ding speculation and hence bring down prices. Also making the tariff structures uniform throughout the country would reduce the need for creation of business en ies just to take advantage of differential tax rates and thus enable industries to focus on their core areas.
    Reply

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