Post GST, Trucking Time Reduces By 24-36 Hours: ASSOCHAM
While the pros and cons of Goods and Services Tax (GST) are being debated across industries, the GST is estimated to be saving 24 to 36 hours trucking time on trunk routes. According to ASSCOHAM quick check, the fleet owners are saving Rs 5000 – Rs 7000 per trip by way of corruption at the Octroi and Sales Tax/VAT check posts which have been subsequently dismantled by most of the states post GST.
The trip of 3 days would take additional two days while crossing the states to pay the various taxes to enter the cities.
“Our quick check has shown that on an average a truck runs for 10-12 hours a day and should cover a distance of about 2200 KMs between, say Delhi - Chennai in 3 days. However, traversing through different states and braving the stoppages at several check posts of VAT, octroi, other local taxes was resulting in additional 2-3 days. So, the consignment between Delhi-Chennai, for instance was taking 5-6 days. At least 24-36 hours would easily be saved for these trunk routes after dismantling of the check posts, by a conservative estimate," said the ASSOCHAM QC after interacting with the fleet owners and transport intermediaries.
Not only the time, but prior to GST, the cost per trip has also reduced substantially. The corruption at each check post through various states accumulated up to Rs 5000 to Rs 7000 additional cost. This cost was met by the trading units.
ASSOCHAM shared that the driver along with his crew was paid ‘out of pocket’ or ‘petty cash’ up to Rs 10,000 before the trip for the routes of Delhi-Mumbai, Delhi- Kolkata, Mumbai-Jaipur, Ahmedabad- Delhi and so on. Now, post GST, this petty cash nullifies automatically due to eradication of check points.
To ensure the ease of business among small and medium enterprises, the reduction in freight charges, corruption money and time is assumed to help the growth of industry substantially.
