The turnaround time for trucks has witnessed a substantial reduction since the introduction of GST a year back.
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, rating agency ICRA said. A study approximately 50 transport companies (pan-India) and 15 consumer-oriented companies (across various sectors) was conducted by the rating agency to comprehend the impact of GST on the ground since its introduction on July 1 last year.
“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,” the report said.
There are mixed observations at the warehouse consolidation front. While sectors such as FMCG reported a slow warehouse consolidation process, manufacturing has been successful in consolidating a major portion of their warehouses.
“Overall, close to 50% of the consumer-oriented companies that we interacted with indicated that their warehousing network has not been consolidated, while the remaining indicated that consolidation has either happened or is in the process,” the report said. It has also been learned that several companies are interacting with supply chain management companies who are helping them in revamping their networks, the report said.
Post introduction of the e-way bill in April 2018, the transport operations have become more systematic. There are significant time savings and paperwork reduction due to the digitisation of processes, the report also said. Moreover, the implementation of a strict timeline and online recording of every inspection of goods in transit also helped. The government said that every inspection of goods in transit will be recorded online by the proper officer in specified format within twenty-four hours of inspection and the final report in specified format will be recorded within three days of the inspection. If a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter can upload information on the E-way Bill portal.
“E-way Bill has led to the better implementation of the GST on movements of goods. It has definitely reduced compliance hassles and queues. The timeline set for addressing issues (faced by the businesses/transporters) by the government is also a good move. However, some transporters still face some delays if they make mistakes while filling out the E-way details,” Abhishek Rastogi, Partner at law firm Khaitan & Co told FE Online.