The introduction of the e-way bill has helped the transporter community in improving its operational efficiency.
The introduction of the e-way bill has helped the transporter community in improving its operational efficiency. “There is significant time savings and paperwork reduction due to the digitization of processes. Although few companies faced difficulties due to teething problems like technical glitches, limited awareness etc. the overall response to E-way bill has been positive,” ICRA study said. The e-way bill that was implemented on April 2018 has been received positively by the transported community, ICRA said.
The rating agency also said that merely 10 percent of the transporters indicated their overall costs have reduced post implementation of the GST. Over 40 percent of the transporters suggested that costs were rising, the rating agency added.
A study of approximately 50 transport companies (pan-India) and 15 consumer-oriented companies (across various sectors) was conducted by the rating agency ICRA to find out the impact of GST on the ground since its introduction on July 1, 2018.
ICRA also said that the turnaround time for trucks has witnessed a substantial reduction since the introduction of GST a year back. In states such as Kerala, West Bengal, Maharashtra, Madhya Pradesh and Bihar, which were one time known for notoriously high waiting time spent at their borders, the impact has been much more pronounced, the study said.
“The removal of inter-state check-posts has resulted in significant reduction in waiting/idle time for trucks, thereby improving their turn-around time and efficiencies, as confirmed by 60% of transporters that we interacted with. As per ICRA estimates, so far there has been about 18-20% improvement in turnaround time because of GST,” ICRA study said.