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Wed, Jan 17, 2018 | Last Updated 8:45 am IST

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GST companies receives added incentive to either develop its own logistics arm

GST companies receives added incentive to either develop its own logistics arm
GST companies receives added incentive to either develop its own logistics arm
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Mumbai sources have added that with technology push in a right way by the NDA government, leveraging technology to set up logistics industry on the lines of Aadhar and linking it to goods and services tax (GST) network database has become a need of the hour to reduce complexities and prevent fraudulent cases. It becomes an added benefit to reduce logistics costs and improve the competitive edge.



Accordingly the Radio Frequency Identification (RFID) tags on vehicles for electronic toll collection and global positioning system (GPS) devices may provide the building block for this initiative, which will help in accessing information related to the consignment, vehicle, driver and location, thereby enabling verification, as per report submitted by consulting firm A.T. Kearney for the ministry of road transport and highways.

GST companies receives added incentive to either develop its own logistics arm

Moreover t he logistics sector in India, including the 3PLs is a highly fragmented with highly inefficient supply chains of the firms. This will benefit the companies as a system of seamless tax-credits throughout the value chain and across state boundaries will bring down the cascading effect of taxes and thus reduce the hidden costs of doing business.


GST companies receives added incentive to either develop its own logistics arm
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