Budget 2019 expectations: Logistics companies demand GST tax relaxation from Modi government
Transport start-ups have demanded that the GST rate should be decreased to 12 per cent from existing 18 per cent.
Budget 2019 demands: The high rate of Goods and Services Tax (GST) being levied on the logistics companies, transport start-ups have demanded tax relaxation from the Narendra Modi government in budget 2019. They said that rise in fuel charges and toll taxes are already made their life difficult. Now the 18 per cent GST is like adding salt on their wounds.
Speaking on the matter Rajeev Chawla, Chairman, IamSMEofIndia told Zee Business online, "GST rate has to come down and budget 2019 is the right time for that." On how much they need from the government to cut down in the GST Chawla said, "It shouldn't be more than 12 per cent for transport start-ups."
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Sahil Mittal Co-Founder, ShiftKarado told Zee Business online in a written statement, "The time post-GST implementation of 18 per cent has been a tough time for the logistics startups. The spike in fuel charges and toll taxes are trying its level best to choke the startups, the upheaval that the big market players are able to survive. In the FY19 budget, we hope the central government will come up with lenient policies keeping the current challenges in the sector under consideration and bring relaxation to the startups accordingly. If GST tax can be reduced a little or the allocation of resources for infrastructure are increased, the new players can occupy a secure place in the market."
Mittal said the efforts should be focused on reducing the transportation costs, which in turn, will put living costs and inflation under control. Moreover, clarity on the several aspects of E-Way Bill application is required. Presently, Indian logistics sector registers compound annual growth rate (CAGR) of 7 per cent on an average, which needs to be accelerated and we are optimistic about the opportunities that FY 19 will bring in.