Commerce Ministry Asks For Single GST Rate On Multimodal Transportation

The Commerce Ministry of India has asked the government to put one Goods and Services Tax (GST) rate on multimodal transportation medium of vehicles in order to lower compliance burden on automobile producers and enhance logistic services, an official mentioned.

Here multimodal transportation stands for a blend of more than a single mode of transportation including sea, road, and rail used for delivering the goods from one end to another end.

Recommended: GST Impact on Automobile and Spare Parts Industry in India

Society of Indian Automobile Manufacturers (SIAM) which is a statutory automobile industry body had reached the logistics department of the Ministry and asked about the issues companies are facing in lieu of an apparently determined multimodal GST structure.

As per the SIAM, in the current scenario, automobile manufacturers and their respective logistics service providers generally come across the issues like waving GST rates on different products of this multimodal transportation procedure. The manufacturers have clearly said that there is no availability of apparently mentioned multimodal GST procedure which creates further problems for automakers as they are not able to hand over the finished commodity through one document to a service provider of third-party from the factory side on the basis of end-to-end transportation.

The government mentioned officially that the current situation is proceeding to the complex structure in the overall taxation system which is further leading to some problems and issues to move further. The SIAM has recommended the GST council to levy one GST rate only for multimodal transportation of automobile vehicles, as mentioned by an official.