There has been a lot of noise about the pros and cons of GST. While some people consider it a revolutionary thing, for some people it is going to impact the business adversely. As far as transportation business is concerned, the effect seems to be quite positive.
As on today, business is called Goods Transport Agency if it offers material movement on the road and issues a valid consignment note to the client. Service tax is applicable on it. According to the current rule, complete service tax is paid by the person who is liable for paying service tax. It will be other than the provider of the service after taking into consideration the abatement. Top transportation companies bill their clients according to the applicable service tax rules. Thus, the business is fair and clean.
However, some transportation companies try to breach the system by following improper practices. According to the industry experts, the proposed GST bill will reduce the malpractices as there will be a unified tax system.
GST will make the things simple
The objective of implementing GST is to remove the ambiguity and multiple-layered tax structure. Also, it is an attempt to make the tax structure uniform across the country. The biggest beneficiaries of GST implementation will be, Freight transport services in india.
Experts say that the proposed GST structure will boost the logistics business up to a great extent. First of all, it will remove the cascading effect or double taxation impact. Also, it will remove the logical boundaries of states and offer the whole country as the potential market. Since tax practices will become simple, people will be less tempted to follow incorrect and inappropriate practices. It is a good thing for Logistics companies. Fair and clean companies such as Navata Road Transport will get benefited greatly from these changes.