After more than half a decade of dispute and discourse, the Goods and Services Tax has been passed by the Indian Parliament. Eminent logistics courses are tailoring their syllabus to accommodate the revisions brought about by this. The landmark decision came with a lot of perks for the Indian economy and industries, directly impacting the logistics sector. Implementation of the GST bill has resulted in the adoption of uniform taxation and has enforced Central Accountancy across all the states in India.
This milestone resolution was lauded by companies operating on Indian soil as the cost imposed on them for logistics and supply chain intensification will be reduced by a margin of 1.5 to 2.5%. This will empower them with much more control on the market by enhancing the quality and reliability of supply chain management.
Implement hub and spoke model
The hub and spokes model of the supply chain, a topic stressed in logistics courses and the widely prevalent practice in companies abroad, will now be implemented in India by the execution of the GST bill which prohibits the tax imposed on goods by the State Government for crossing their borders.
This will also enable companies to set up a larger warehouse for their goods from where they can peddle it to every corner of the nation rather than setting up smaller warehouses in every state in order to circumvent the State tax levied from them.
Moreover, the adoption of the GST will prove to be more profitable for third party logistics operators as organizations will tend to utilize the former’s services due to their greater conviction of the local roadways and markets in their respective states. The decisive decision by our representatives by voting for the implementation of the GST will undoubtedly herald a new era of economic growth and prosperity in our nation, primarily generating a positive impact on logistics.