Budget 2019: Government should consider deploying a uniform GST, says FarEye CEO Kushal Nahata
The government needs to pace up the development process of various infrastructure projects and announcements can also be expected around building integrated transportation hubs or Multi-Modal Logistics Parks, believes Kushal Nahata, CEO & Co-founder of logistics-tech startup FarEye.
The government needs to pace up the development process of various infrastructure projects and announcements can also be expected around building integrated transportation hubs or Multi-Modal Logistics Parks, believes Kushal Nahata, CEO & Co-founder of logistics-tech startup FarEye. "The pace of development of some crucial infrastructure remains slow. There is a need to speed up the development process of projects like the Dedicated Freight Corridor (DFC). We are also expecting announcements with regards to building integrated transportation hubs or Multi-Modal Logistics Parks," he told Zee Business Online ahead of Budget 2019.
Nahata added that the upcoming budget should include regulations that will drive organizations to digitalize key logistics and supply chain processes. "For instance, by mandating digitalization of certain key accounting, billing, and logistics processes the government can ensure greater levels of compliance (especially with regards to environmental sustainability) and tackle corruption better. Also, this year’s budget should highlight the current state of eWay bill adoption," he added.
Nahata added that there is also an urgent need to simplify the Goods and Services Tax (GST) with regards to the logistics industry. He said that the government should also consider deploying a uniform GST rate across the country in this year's budget.
"The government can plan to introduce special windows to help logistics startups compete with large technology providers when it comes to winning government tenders. Also, there is an urgent need to simplify GST, especially with regards to the logistics industry. Once multiple types of businesses are brought under an organized trade structure, supply chain organizations will be able to deliver better value propositions to customers and hence boost revenue collections for the government. Deploying a uniform GST rate across the country is another initiative that the government needs to talk about in this year’s budget," Nahata said.
The Modi government is set to present the first budget of its second tenure next month. This year's Union Budget will be presented by Finance Minister Nirmala Sitharaman on July 5.
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