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

By: |
New Delhi | Updated: July 3, 2017 10:17:22 PM

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.

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 newsChairman 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.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1National Housing Bank to come out with notification on LTV ratio shortly
2GST India 2017: Disability tax under GST insensitive, says Rahul Gandhi
3How will GST work: Here are 10 points to know on how the new tax regime will function