GST: Bhopal Cuts dwon transportation costs

INDORE: With the roll out of the new Goods and Services Tax (GST), the state is likely to grab the attention of newer companies to set up logistic facilities to cut down on transportation costs and cater to more consumers in a shorter duration.
The state is expected to emerge as a logistics hub catering to the needs of varieties of industry.
Vishal Malik, business head, retail, Intex Technologies said, “The state has the potential to emerge as a logistics hub with the implementation of GST.The state will get more advantages after GST.”
Malik said industries with logistics in the state will benefit because transportation speed will increase and costs would reduce given the state’s central location.
GST is expected to be implemented in the country from July 2017 and aims to provide a single window tax structure across the country, hence simplifying tax refunds, inter-state transfer of goods and ensuring merchant compliances.
Industrialists said that the new tax regime will decide how supply chain management will work in the country.
Malik said, “Manufacturing is dependent on three factors -taxation, supply chain logistics cost and environment. Industries will go where all these things are available.”
Tax experts said that GST will bring uniformity in taxes across the world, providing a level field for all.
Sushil Khandelwal, a GST consultant said, “After GST, transportation will become cheaper. New companies will come up in the state to set up logistics as it will be economical for industries to cater to regional customers.”
CP Mukundan Menon, executive vice president, air conditioning & refrigeration products sales group, Blue Star Limited said, “MP looks like an attractive place for industries to explore opportunities and GST will be an important deciding factor.”