Allcargo Logistics is one of the largest integrated logistics solutions provider, in the private sector. Adarsh Hegde, Joint Managing Director, Allcargo Logistics Ltd. talks about the implementation of GST, DPD program and work culture of the company:

 

How has GST transformed the Logistics Sector? 

 

GST has certainly brought paradigm shifts in the functioning of the Indian logistics sector and ensured seamless movement of goods and services across the country. Removal of inter-state trucking points has resulted in lower transit durations for truckers and fast-paced freight movement across states. With companies opting for centralized warehousing locations on the basis of the hub and spoke model rather than tax compliance requirements, GST has the potential to create mega warehousing hubs in the country.

 

Consolidation of warehousing operations would lead to improved inventory management with an onus on deployment of technology tools like RFID-tracking and IT-enabled warehousing management systems. All this will require the support of a robust IT infrastructure to ensure seamless and hassle-free processing. Companies require upgrading their systems and evolving to new ways.

 

While companies are getting accustomed to the revised system now, we have lost out on some crucial months of project execution which were delayed or were put on hold due to lack of tax clarity. Some teething problems still exist, which should be ironed out by Q1 FY 18-19. The landmark tax reform has the potential to help position India as a global logistics destination.

 

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