Logistics sector to gain most from GST as costs will be down by 20%: Nitin Gadkari

Back-of-the-envelope calculations say logistics costs would come down by at least 20%.
Companies could do this with a hub-based warehouse system instead of having warehouses in all major consumer states.
The checkposts at state borders have already been brought down. Karnataka, Andhra Pradesh and Tamil Nadu, along with 20 more states, have dismantled border checkposts, reducing hassles for trucks.
Several others are in the process (of doing so). The border checkposts have been removed even as states await electronic way bills, which will make truck movement easier. The e-way bill on GSTN (Goods and Services Tax Network)is expected to be introduced soon and will aid movement of trucks.
India is a growing economy and the high cost of logistics, currently at 14% of GDP, was having a negative effect. The average speed of freight transportation has been increased from the current 20-25 km per hour to 40 km per hour. Trucks that were earlier doing 200 km a day would do 400 km now.

Traders and various manufacturer bodies have been wary of GST. Several have also complained of higher tax slabs for their goods.

Small traders need not worry as anyone with an annual turnover of Rs 20 lakh doesn’t come under the ambit (of GST). And those (with turnover) between Rs 20 lakh and Rs 75 lakh will just have to file the return. Some hard steps were needed, but it will ultimately have a positive impact. GST will make at least 99% of all transactions transparent.
Give us two months and if there are problems then the people are free to protest. We are all elected representatives and so are the people in the GST Council. We are sensitive to the problems of people. We are always open to changes. If traders and businesses still face problems, we’ll do everything to comfort them. But those minor protests cannot undermine the benefits.
GST will benefit all, and most importantly, raise tax collections for the Centre and states. It will put an end to inspector raj. There will be very little scope for a parallel economy, leading to curbs on generation of black money. It is a win-win situation for businessmen, consumers, state governments and the Centre.