Currently, a complex web of subsidies, tariffs and cascading taxation in the
T&L sector has resulted in distorted pricing, created wasteful leakages and
opportunities for rent-seeking. The Goods and Services Tax (GST) is expected to
minimise the issue of multiplicity of taxes and tax cascading, especially in view of
the seamless flow of credit. It is anticipated that GST will result in consolidation
of warehousing alongside facilitating seamless interstate flow of goods. GST is
also expected to provide an opportunity to dismantle various check posts, thus
bringing about a substantial reduction in logistics costs.
The CII-PwC Report on ‘Goods and Services Tax - Transport and Logistics Sector' was released at CII Logistics Summit 2015 organised by Confederation of Indian (CII). This thought leadership publication throws light on the 'the what and why of GST'.