GST will positively impact the logistics sector in the long term, says Pirojshaw Sarkari, CEO, Mahindra Logistics

Says Pirojshaw Sarkari, CEO, Mahindra Logistics: “The introduction of GST a year-ago led to consolidation of multiple taxes, thereby simplifying processes. Its implementation is taking time for customers and logistics companies as they are getting accustomed to the changed systems and the benefits it can offer. Initially, it impacted the inflow of new orders and cash flows, as customers were grappling with the change. Slowly, things are coming back on track. On ground, the per-day running time of trucks, has gone up. In the last one year, many customers and logistics companies have consolidated their warehouses by moving from the earlier tax-efficient model to obtain maximum operational efficiency. Additionally, there has been significant time saving and paper-work reduction, due to digitisation with advent of E-way bill. The recent announcement of increasing tonnage in trucks will also lead to optimum utilisation of manpower and resources. On the whole, at Mahindra Logistics, we believe that GST is a significant regulatory change, with positive impact for logistics sector in the long term.”