ICRA RESEARCH: GST IMPLEMENTATION HAS IMPROVED TRUCK TURN AROUND TIME (TAT) IN INDIA
By D yadav
Date: Oct 08 , 2019
As per the research data has been released by ICRA in Sept 2019.
The implementation of unified tax regime, Goods and Services Tax (GST) from July 1, 2017, has had a significant impact on fleet owners and their operations, and has been a positive for the overall road logistics sector.
The abolition of state-level VAT check posts has resulted in faster turnaround for trucks, and the increased compliance requirements is triggering a gradual shift towards organized players.
ICRA’s channel check with transport companies pan India indicates that, in line with expectations, the removal of inter-state check-posts has resulted in significant reduction in waiting/idle time for trucks, thereby improving their TAT and efficiencies.
As per ICRA estimates, there has been about 18-20% improvement in turnaround time because of GST.
The impact has been more pronounced in a few states such as Kerala, West Bengal, Maharashtra, Madhya Pradesh and Bihar, which were earlier known for high waiting time spent at their inter-state borders.