The goods and services tax (GST) would help in hassle-free movement of goods and also increase profit margins of companies in the logistics sector, Safexpress today said.
The goods and services tax (GST) would help in hassle-free movement of goods and also increase profit margins of companies in the logistics sector, Safexpress today said. The logistics services and cargo services provider said the new tax regime scheduled to roll out from July 1 will also boost the supply chain and logistics sector in India which is estimated to be over USD 120 billion. “Though it is too early to predict the way in which GST will benefit, but this is for sure that the new tax structure will benefit all of us in the long-run,” Safexpress Managing Director Rubal Jain told PTI.
“In the near future, I envisage benefits getting passed on to every stakeholder in the entire supply chain. The best part is that GST will bring about single tax regime, which will end multiple taxes that we were paying at various levels. Now there will be one tax and hassle-free movement of goods in the country,” he said. “Inter-state transportation of goods will become more efficient, which will lead to our country’s logistics cost coming down significantly,” he said.
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“In anticipation of GST, logistics players in the country are already on the verge of transforming themselves from traditional setups to firms which are ahead on the technology curve. This is expected to reduce the costs incurred by customer and meet their service demands,” he added. Safexpress delivers more than 80 million packages a year, traversing over 6,00,000 km per day. The firm has warehousing space of over 12 million square feet, across its 31 logistics parks located at key industrial hubs. Over 2,500 employees work for the logistics sector leader. The 16th meeting of the GST Council is scheduled on Sunday.