Notwithstanding a few teething troubles, GST is saving trucking time on trunk routes connecting top cities anything between 24-36 hours. Further, a quick check by Assocham has revealed that fleet owners are saving `Rs 5,000-7,500 per trip by way of corruption at Octroi and Sales Tax/VAT check posts which have since been dismantled by most of the states.
After interacting with fleet owners and intermediaries, the Assocham quick check observed, “Our quick check has shown that on an average a lorry/truck runs for 10-12 hours a day and should cover a distance of about 2,200km between say Delhi-Chennai in three days. However, traversing through different states and braving the stoppages at several check posts of VAT, Octroi, other local taxes was resulting in additional two-three days, including those taken for ‘no entry’ traffic restrictions for big cities during the day time. So, the consignment between Delhi-Chennai, for instance, was taking 5-6 days. At least 24-36 hours would easily be saved for these trunk routes after dismantling of the check posts, by a conservative estimate.”
Improvement in freight movement through road and rail would not only result in a huge cost saving for the trade and industry, but would take India quite high on the global index of ease of doing business. “One hopes that the GST is implemented in earnest by all the states in coordination with the Centre and comes out as a success story for the country”, the chamber has said.