BJP government is eyeing on lowering down the GST rate on multimodal transport operators from 12% to 5%, as the Assembly elections are nearing. The government is likely to make recommendations for the same to the Goods and Services Tax (GST) Council.
The state is stepping ahead for providing a bundle of concessions to the private port operators and GST rate reduction will play a pivotal role in these benefits. Some amendments have been proposed to the State’s Port Policy 2016 on the basis of representation made by the Association of Multimodal Transport Operators of India (AMTOI), Indian National Shipowners Association (INSA), and other stakeholders. These amendments include a reduction in port and wharfage charges for major as well as non-major ports which are going to benefit around 500 or more minor and major ports.
An official of the transport department said, “The INSA has requested that the benefits to industries under the Industrial Policy be extended to cargo carriers as well. It also said charges of non-major ports are higher as compared to major ports. We have promised to examine the issue carefully.”
At present, GST on road transport operators is 5% which is considerably lesser than 12% GST on multimodal operators. The AMTOI had appealed to the government to lower down the GST rates, to which the government responded in a promising manner that the issue will be taken forth to the Centre once the AMTOI provides appropriate information or data as a cornerstone for the claims.
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“We have decided to ensure the capital dredging work too goes on in coordination between the State, the MMB and the MIDC,” the official said.
The amendments will curtail down the current rebate provided on inter- and intra-State movement to ports and jetties. The Maharashtra Industrial Development Corporation (MIDC) and the Maharashtra Maritime Board (MMB) are giving attention to the development of ports present by the national waterways.
Simultaneously the changes will focus on security around the ports in Maharashtra state. As stated by the Navy and Chief Minister Devendra Fadnavis, 591 ports of Maharashtra and 20 ports of Raigad district are very sensitive, the recommendation by the naval inspection to bolster the security of these ports will be highly considered while finalising the amendments.
