GST will simplify India's taxation system by implementing a single tax for goods and services nationwide. This will encourage companies to establish large logistics hubs in strategic locations and improve transit times by reducing complications at state borders. The logistics industry will benefit from not having to pay additional taxes, and revenue is expected to increase significantly as the taxation system becomes more efficient.

1. IMPACT OF GST ON
LOGISTICS

2. GST: Goods and service tax
• Single comprehensive tax is levied on goods and services consumed
• GST address anomaly and tax factor will not affect on supply and
distribution channel.
• It can be termed as National level VAT on goods and services.
• The rate of tax is same.
• Current taxation system adds inefficiency to supply chain industry.

3. GST rates in various countries
Country Rate of GST
Australia 10%
France 19.6%
Canada 5%
Germany 19%
Japan 5%
Singapore 7%
Sweden 25%

4. Impact on Logistics:
• It will Simplify the Taxation system the whole country will have only one tax to
pay i.e GST.
• Company would be encouraged to setup large hubs in key strategic gateways
location.
• GST would also improve the transit and consequently delivery time because state
borders crossing would likely be uncomplicated.
• The Logistics company will not have to pay additional taxes.

5. Current Scenario
• 150 countries across the globe have GST in some forms.
• New Zealand introduced GST in 1987 and it increased their revenue
by 45% .
• Now also they have GST only at single rate and by this they are
benefited.
• Logistics industry in India contributes of 13% GDP in the economy.

6. Future Aspects
• It attracts lots of investors as the Logistics sector has 100% of FDI in
India.
• By introducing GST the taxation will get simplified and the revenue
from it will be increased many times.
• The company will have to pay only the GST not any other taxes and
the profit for the industry will also increase.
• So that the customers will get benefited.