The Goods and Service Tax Regime has been rolled- out on 1st July across the country and it is saving about 24 – 36 hours time of fleet owners at each check-posts as VAT, Sales Tax, and Octroi duty has been removed by most of the states in the new regime. Apart from this, new indirect tax structure would save nearly Rs 5000-7500 per journey shipment of goods by road and rail.
While interacting with the fleet owners and transport intermediaries, ASSOCHAM said, “Our quick check has shown that on an average a lorry/truck runs for 10-12 hours a day and should cover a distance of about 2200 kms between, say Delhi – Chennai in 3 days. However, traversing through different states and braving the stoppages at several check posts of VAT, octroi, other local taxes was resulting in additional two-3 days, including those taken for “no entry” traffic restrictions for big cities during the day-time. So, the consignment between Delhi-Chennai, for instance, was taking 5-6 days. At least 24-36 hours would easily be saved for these trunk routes after dismantling of the check posts, by a conservative estimate”.
Further adding that “Thankfully, that has also been done away and one hopes a new avatar is not found for the same. For now, it has come as a big relief for the transporters who say, the ultimate advantage is accruing to the customers and to the trade and manufacturing value supply chain”.
While interacting with fleet owners it is disclosed that before starting the journey, the crew members including driver and helpers were provided “out of pocket” or “petty cash” or minimum Rs 10,000 for the routes of Delhi-Kolkata, Delhi-Mumbai, Ahmedabad-Delhi, Mumbai-Jaipur, Bengaluru- Delhi and much more. After the completion of the journey, the truck driver must give the details of the account (hissab) which included expenditures at each of the forced check-points.
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DS Rawat Secretary General of Assocham said that, “What a relief, it is…. We hope, further improvement is done in this direction in terms of improving other infrastructure. For instance, the “no entry” traffic restrictions can be done away if high class dedicated bye-passes are constructed around the major cities so that the truckers can play seamlessly”.
Improvement in shipment via road and rail would not only save huge cost for the trade and industry but also would take India at highest peak and provide smooth running of the business. The chamber said that, “One hopes that the GST is implemented in earnest by all the states in coordination with the Centre and comes out as a success story for the country”.
