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Old 29th August 2017, 12:03   #1
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GST improves productivity of Indian trucks; decreases travel time

This article speaks of how a truck did a 5-day trip in 3.5 days, thanks to fewer border checks . Hyundai has also been talking about how its cars will reach dealerships faster .

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The average distance covered by an Indian goods carrier has risen from 225 km a day to 300-325 km after the imposition of goods and services tax (GST) dismantled multiple sales tax and inter-state check gates on highways and state borders.
Source

Quote:
Border commercial tax check posts have been abolished in 22 states, including Andhra Pradesh, Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Tamil Nadu, Sikkim, West Bengal, Delhi, Haryana, Odisha, Rajasthan and Uttar Pradesh, after the GST launch on July 1.

Also, eight states — Assam, Himachal Pradesh, Manipur, Meghalaya, Nagaland, Punjab, Mizoram and Tripura — are in the process of removing them
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Last edited by GTO : 29th August 2017 at 15:12.
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Old 29th August 2017, 12:10   #2
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Re: GST improves productivity of Indian trucks; decreases travel time

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Originally Posted by GTO View Post
Hyundai has also been talking about how its cars will reach dealerships faster .
I have experienced this first hand. Before GST, a typical order at MGP store which needed spares to be delivered from Gurgaon to Ranchi, needed approximately 7-10 days. But immediately after GST implementation, they reach my place within 3-5 days.

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Shashi
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Old 29th August 2017, 12:13   #3
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Re: GST improves productivity of Indian trucks; decreases travel time

These border check posts used to be a traffic mess . The queue of trucks used to delay the private vehicles, as I've experienced at Attibele( KA-TN border ) and Jaleswar( OD-WB border )

From what I've heard , the situation at Attibele and Jaleswar have improved with the removal of check posts after GST implementation. There are still the RTO check posts , but they're not much of a problem.
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Old 29th August 2017, 12:39   #4
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Re: GST improves productivity of Indian trucks; decreases travel time

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Originally Posted by sdp1975 View Post
These border check posts used to be a traffic mess . The queue of trucks used to delay the private vehicles, as I've experienced at Attibele( KA-TN border ) and Jaleswar( OD-WB border )
...
And a source of immense pollution. You literally walked into a cloud of smoke and dust at these border posts. And cross country trips on Bikes and Cars should be much more hassle free now I presume.

The GST is worth the trouble just for these improvements alone
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Old 29th August 2017, 18:12   #5
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Re: GST improves productivity of Indian trucks; decreases travel time

I'm not sure about border check posts, but on a recent trip to Chennai, I noticed that the number of RTO check posts have increased significantly. Also many Zig-zag barriers have come up. I still saw many trucks double parked on the highway, but just at more places.
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Old 29th August 2017, 20:39   #6
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Re: GST improves productivity of Indian trucks; decreases travel time

While this is really saving time on highways, Pune Cantonment is still collecting entry tax for vehicles causing traffic problems at cantonment entry points. At some places, vehicles just block a single lane that is available for traffic to pay tax.

And we thought GST was supposed to replace all local body taxes.
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Old 30th August 2017, 11:33   #7
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Re: GST improves productivity of Indian trucks; decreases travel time

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While this is really saving time on highways, Pune Cantonment is still collecting entry tax for vehicles causing traffic problems at cantonment entry points. At some places, vehicles just block a single lane that is available for traffic to pay tax.

And we thought GST was supposed to replace all local body taxes.
What I have heard/read from news papers, Pune cantonment board falls under ministry of defense and not under state or local tax body, hence gets exemption from GST and can collect the tax.
Though I feel it is purely ridiculous as both ministry of defense and ministry of finance are under central Govt., it would have been more smoother to getting money from one pocket and putting into another than paying to states. I sincerely hope, the same minister handles both the ministries, he should ease it up soon.
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Old 30th August 2017, 15:04   #8
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Re: GST improves productivity of Indian trucks; decreases travel time

I work with one of the leading logistics start-ups in the trucking industry. While the points made are mostly correct, even companies are a culprit in delayed deliveries. They always prioritize cost over better service at a slightly higher price. As it is the delivery timelines will improve due to removal of check posts but there is no network design efficiency being driven by the service providers as it involves higher costs. Hence, the service can be much faster, only if the incumbent leaders and users (companies) are willing to invest in it.
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Old 30th August 2017, 22:23   #9
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Re: GST improves productivity of Indian trucks; decreases travel time

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Originally Posted by PetrolRider View Post
I sincerely hope, the same minister handles both the ministries, he should ease it up soon.
Unlikely unless a chorus grows against it through media etc. Problem is nobody is heard complaining, at least not loudly enough. It's mainly transporters and traders who have to speak this out loud.
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