NEWS

GST IS LIKELY TO RESULT IN AN ANNUAL SAVING OF RS 30,000 CRORE FOR TRANSPORT SECTOR

By Rohit Kr. Patra | TNI Network
Date: Aug 17 , 2017

NEW DELHI: Post-GST, travel time for long-haul trucks have reduced by at least a fifth, Ministry of Road Transport and Highways has said. “A typical truck spent 20 per cent of its runtime at interstate checkposts (pre GST).Inter-state check posts removed, travel time of long-haul trucks, other cargo vehicles cut by at least one-fifth,” the Ministry has said in a recent report.

The primary ground surveys in the very first month of July showed that a truck doing a 2,000 km round trip in a week was able to save its 40-45 hours of travelling time.

Since the GST has rolled out, reducing the time needed for the movement of goods across states, most state governments union territories have dismantled border check-posts operated by indirect tax administrations. Following the roll out of GST, check-posts and barricades have been removed from state borders.

According to the survey this has cut the travel time of trucks and other cargo vehicles on highways by almost 20% and adding that a truck could save up to Rs 1.5 lakh per year as lesser travel time would mean lesser fuel outlay.

Trucks are not quailing at state border check-posts anymore. Per trip saving has been around Rs 5,000 on account time and fuel saved.

Monitoring and collection of sales tax at inter-state check posts led to major traffic congestion at these points, resulting in slower movement of freight and passenger, and consequently higher costs and pollution,an average Indian truck covers only about 50,000-60,000 km a year as against 3 lakh km done by a truck in the US.After the roll out of GST, most state governments and union territories have demolished border check-posts operated by indirect tax administrations, decreasing the time needed for the movement of goods across states.

India has about 12 lakh trucks with national permits and almost the same number, with interstate permits. According to the portfolio the total annual saving is probably to be Rs 30,000 crore.

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