TIL Desk/Business/New Delhi/ India’s logistics sector would gain the most from the Goods and Services Tax (GST) as costs would fall by almost 20 per cent, Road Transport and Highways Minister Nitin Gadkari said on Wednesday.
Logistics parks being set up across the country will enable long haul freight movement which would reduce freight transportation costs and throw open many employment opportunities, a ministry statement said quoting Gadkari.
“India currently has very high logistics cost — about 14 per cent of the total value of goods as against 6-8 per cent in other major countries.” “GST will serve to bring down the logistics cost to about 10-12 per cent by facilitating efficient inter-state flow of goods and accelerating the demand for logistics services,” it said.
The ministry also released a booklet on the benefits of GST for the transport sector. According to the booklet, an average Indian truck covers only about 50,000 to 60,000 kilometres a year as against three lakh kilometres by a truck in the United States.
