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GST: End of road for check gates
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Bikky Khosla | 01 Aug, 2017
The Goods and Services Tax (GST) would benefit India's small businesses, accelerating transportation of goods across the country, Prime Minister Modi recently said in a meeting. A recent report by the Ministry of Road Transport and Highways echoes a similar view. It says a single GST will lead to increased uptime for trucks, better turnaround and optimized warehousing structure. It all sounds reasonable. In fact, logistical efficiency is considered to be one of the key aspects of the new tax regime, and it seems the sector now stands at a transformational moment.
The benefits are obvious. According to a recent report published by Transport Corporation of India (TCI) and IIM-K, the delays caused at interstate check gates impose transaction costs of around $21 billion annually on India's businesses. They affect efficiency as well. The transport ministry report adds that a typical truck spends nearly 16 percent of the time at check posts. This is why a truck in India covers an average annual distance of only 85,000 km against 150,000 to 200,000 km in advanced countries. And now with most of the states abolishing their border check gates, we can expect a better situation.
Also, none could be happier than our truckers for whom check gates were not only about delays. Besides spending long hours, at times a full day, at check posts they faced rampant corruption and harassment, with a horde of petty government staff extorting money in the name of various taxes. They were often forced to unload and reload goods in the name of checking. Time and again, it was pointed out how these check gates turned into cash cows for corrupt officials, political leaders, ministers, self-styled NGOs and even underground outfits. Now we can expect these practices to come to an end.
But uncertainties still prevail. First, despite abolition of the tax check gates, we still have scores of laws regulating the movement of goods in the country. So, there are still many reasons why trucks could be stopped and inspected. We need an integrated system of checks and inspections. Second, concerns abound over the e-way bill mechanism. The draft rules require a truck to generate an e-way bill even for interstate movements. Also, under the mechanism transporters require to change the vehicle number every time the shipment changes trucks. These concerns should not go overlooked.
I invite your opinions.
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E-Declaration in Kerala
Shaiju Nair | Mon Aug 7 08:30:03 2017
In GST, even though the Checkposts are considered obsolete, Kerala Govt. had re-introduced previous E-declaration under KVAT. These kind of unjust and over-smart acts are still causing unnecessary delays. As someone aptly mentioned in their comments; these corrupt officials are not going to easily give away there privileges. We need to fight against this.
Transportation
Radhakrishnan Parakkat. | Fri Aug 4 01:16:45 2017
Indian authorities do not leave their power that easily especially that give chances for corruption. Again many states have started various forms viz.403,own e-way bills, entry forms etc and there by started harassing the truckers. This undermines the very purpose of GST. We had already lost many years by not introducing it in the past and when introduced started undermining by introducing various forms. Our politicians will never improve and change with time.
GST - New Guest of India
A V Chandran | Thu Aug 3 09:50:11 2017
GST ON INSURANCE PREMIUM MUST BE MADE APPLICABLE FROM POLICIES ISSUED ON OR AFTER 1ST JULY 2017 AND ENSURE THAT NO GST IS APPLICABLE FOR THE POLICIES ISSUED BEFORE 1ST JULY 2017: As far as LIC premium is concerned for Policy Bond executed and issued it stood firm since its inception onwards whereas effective 1st July 2017 onwards it stands deviated in view of GST hence it needs befitting corrective action in place. I one of the policy holders have a suggestion to take care of LIC premium on the following method: 1. NO GST IS APPLICABLE ON PREMIUM FOR THE POLICIES ISSUED BEFORE 1ST JULY 2017 2. YES GST IS APPLICABLE ON PREMIUM FOR THE POLICIES ISSUED ON OR AFTER 1ST JULY 2017 SUBJECT TO INCLUSION IN EXISTING PREMIUM APPLICABLE BEFORE 1ST JULY 2017 IN VIEW OF HIGH PREMIUM CHARGED BY LIC SINCE ITS INCEPTION. This note is being got submitted to the Finance Minister of India for his war footing review in GST and war footing implementation duly reviewed for the benefit of the policy holders in force and future policy holders. All Insurance Companies must ensure that the table of premium made on or before 1st July 2017 is inclusive of GST element and no extra GST is levied thereon and such premium table must be kept valid for next five years subject to review with 5% growth rate that too inclusive of GST and ensure that no extra GST is levied in future.
Check gates gone- but what about toll gate
umamaheshwar.g | Wed Aug 2 11:17:00 2017
We are really happy to get away with Check post and its day light robbery. but at each toll gates the vehicles are crawling and the momentum is getting lost for each passer by. Recent IIT- M study says billion of l tr of fuel is getting wasted at the toll gates too.
esugam in karnataka
Dharmendra | Wed Aug 2 08:32:04 2017
Dear sir, I would like to inform you that eway/ esugam is still being continued in Karnataka which causes lots of hardships to transporters as well as suppliers. Regards
E Way Bill should be abolished
Santosh chowrasya | Wed Aug 2 06:17:34 2017
We support to abolish E way bill for Interstate transaction.
Abolished check posts Way bill
SANDEEP C PALANDE | Wed Aug 2 04:58:30 2017
Sir, Refer to above report I also agree with this comments. In our country under roof of Road Permit a lot of corruption and harassment is going on to the truck driver.This will affect the business ability of our nation. In my opinion road permit concept should be abolished permanently.Only vehicle capacity & pollution control slip, driving licence can be checked in transit.ALl check post official sitting at check post doing the harassment job only of the check post. This will affect the performance criteria of our shipment.When we say that we are the one Nation & country then why this permits is required. Sincere request to PM - Mr. Modiji remove the WAY bill concept. Only vehicle fitness certificate , vehicle registration, driver licence copy & alchohol taken by driver can be checked to avoid the road accident. Jai Hind Regards Sandeep C Palande 9867008120
GST- Extra ordinary guest of India
A.V. Chandran | Wed Aug 2 04:52:02 2017
GST is one of the macro revenue factors to this Great Nation,India subject to extra ordinary increasing return and subject to extra ordinary speed up between to and fro transportation of goods. Considering macro nature of this country Goods movement is devoting round the clock involving various transport mechanism and corresponding withdrawal of abnormal check posts whereas full-fledged check is a must at loading station and unloading station subject to no deviation and no misleading in order to ensure actual goods movement. GST element on account of mass transport of goods will have macro role in revenue generation. The other macro area is GST on Insurance Premium will have extra ordinary income generation in view of its FIRST entry hence it could be treated as extra ordinary additional income of increasing return. If we deeply examine FIRST entries like Insurance are covered on various items and all are resting in the mouth of GST with no justification hence such items could be exempted from GST once for all. By virtue of Revenue generation through GST Central Govt of India must ensure its equitable distribution or sharing to all States of India subject to consideration of Population of precise State. Retaining 10% of overall GST to Central Govt and left out 90% of GST could be shared by one and all states based on population factor of state divided by total population of India.
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Re: GST- Extra ordinary guest of India
A.V. Chandran | Thu Aug 3 09:35:03 2017
By virtue of Revenue generation through GST Central Govt of India must ensure its equitable distribution or sharing to all States of India subject to consideration of Population of precise State. Retaining 30% of overall GST to Central Govt and left out 70% of GST could be shared by one and all states based on population factor of state divided by total population of India. For instance if population of UP is 1000 lakh the sharing of UP is 70% of GST x 1000 lakh/13000 lakh (projected population of India). This type of calculation is a must for sharing GST and it could be a part and parcel of the Central Budget. In short the great advantage of GST is removal of check posts involving macro figures and addition of Insurance Premium and share market will have extra ordinary macro revenue to the Great Nation. Further it is also suggested that Income Tax could be converted into GST as per working attached herewith in respect of Individual, Companies and Institutions from micro to macro and sharing between Central and States.
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DELHI NCR
S.P.Singh | Wed Aug 2 03:52:42 2017
Happy for GST but the commercial vehicles are still stopped on all entry points of Delhi and charged for entry tax , should it also not be abolished ? I wish it should be .
GST
Sunil Caldera | Wed Aug 2 03:45:36 2017
DEAR Sir, With the new GST coming up forwarders bill it to destination forwarder and it will be passed on to actual consignee., which there costs for goods will go up and will not be able to market the goods for the local market. Recently we got a shipment from Delhi and the agent billed us US$ 99.80 as GST which we have to pass on to our customer. This will not encourage the buyers of other countries to buy from India and they will look some other country to purchase goods. This way India will loose business . We need to clarify that this GST charges are they refundable or can we claim. Already for Indian remittances Banks have increased their charges to US$ 25/- from US$ 10/- and top of that if we are to bill GST the consignee will be killed. We await your comments.
What about GST Payers
Mohamed Saleem Zackria | Wed Aug 2 00:11:29 2017
What they mean to say is that GST system is more favourable for truck drivers and logistic companies. They should first protect the manufacturers, traders, farmers and especially the exporters. Instead truck drivers and bribe takers are a priority. Our country is heading towards the rules and laws disliked by the citizens.
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