Road transport industry expecting significant changes in the upcoming GST Council meeting

AITWA is hopeful that the upcoming GST Council meeting will favourably consider its suggestions to improve the functioning of the sector.

One of its long-standing requests has been to reduce GST on trucks from 28% to 18% as trucks are neither luxury nor sin goods.
Similarly, GST on truck tyres, currently at 28%, should be rationalised to 18%, it said in a communique.

 

 

“We hope there will be reduction of GST on trucks. With this we anticipate a fresh wave of truck purchases by small truck owners who were slowly becoming unviable. India’s trucking backbone is the small fleet owners and their well-being would finally be taken care of,” said Mr Abhishek Gupta, General Secretary, AITWAHe expressed confidence that logistics cost would come down in the upcoming quarters once more trucks are on the roads. This would also facilitate a level playing field for all stakeholders.

 

“We are hopeful that the GST Council shall give due importance to the trucking industry and take some positive steps to enhance demand for trucks by reducing GST rates to 18% in the upcoming meeting. This will also help boost India’s self-reliant demand over exports,” opined Mr Ashok Goyal, National President, AITWA.

Members are currently delaying purchases, which may have a short-term impact, but a reduction in demand going forward is unlikely, he added.

Another important step that the GST Council should take is to clear the compliance burden on the sector; a smooth transition to the new tax regime is essential to minimise litigation, penalties, etc., it was pointed out.

AITWA has also made a strong representations to ease e-way bill related compliance, which is draconian for the economy. Simpler and smoother logistics will ensure India becomes more resilient on its path to a $5 trillion economy, emphasised Mr Abhishek Gupta, as per the communique.

Please visit our youtube channel https://www.youtube.com/@ikargos2719 for fortnightly logistics news analysis and more!