GST & ITS impact on Indian 3PL industry

Abstract

To make India one unified common market, government of India introduced a common indirect tax for the whole nation named as Goods and Service tax (GST). GST is an indirect tax policy with fixed, limited slabs for taxation of all goods and services. While the GST has been a concept widely accepted in the European countries, India was a laggard in adopting it, with GST being implemented on 1st July 2017. The GST as an indirect tax replaced the hitherto complex combinations of taxes like excise, VAT, service tax, sales tax etc. The motive behind GST was to reduce tax inefficiencies that had earlier existed. This was achieved by clear and well-defined tax slabs, with easy credit mechanism along the supply chain using technology. GST also reduced tax cascading which was the case earlier due to multiple taxes imposed at different points in supply chain on a single entity.