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The Hindu Business Line

‘Truck transit time has come down significantly’

V Balaji, CEO of Mumbai-based Avvashya CCI Logistics, an end-to-end logistics, contract logistics, and supply chain management firm, on the impact of GST on the logistics business:

How has GST impacted the logistics industry?
The long-term story of GST is promising: e-compliance has brought in transparency in taxation, and as a result some products cost less to the final customers. This tax regime has definitely benefited the industry as compared to the earlier one: it has ended the cascading tax effect. Post-GST, demand for warehousing space in large markets such as Mumbai, Delhi, Chennai, Bengaluru, and Hyderabad has increased by about three times. But this is expected to normalise over the next six months. The removal of check-posts and octroi stops has led to a significant reduction in the transit time for trucks; the lead time of truck routes has improved by 25-27 per cent. Earlier, vehicles had to wait seven hours at octroi stops to get into Mumbai. Simultaneously, vehicle utilisation has dropped by about 15 to 18 per cent due to faster turnaround times. We are exploring ways in which this downtime of trucks can be used fruitfully.
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