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GST finally brings some sigh of relief to Indian garment industry

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Earlier trucks used to take a lot of time to reach their interstate destination but now things have improved | Image Courtesy: nhtis.org

After observing strikes and protests all over the country for almost 15 days after the implementation of Goods and Services Tax (GST), there’s some good news for the apparel industry. The GST rollout has resulted in the removal of check posts across 22 states. The move will result in improving the entire logistics system at the ground level in the coming days.

Explaining how the removal of check posts will help the Indian garment industry, Ashok Rajani, Chairman, Apparel Export Promotion Council (AEPC), informed Apparel Resources, “This is definitely going to help Indian apparel exporters. Not only the exporters will get more time but the cost is also likely to come down as logistic companies will now charge less for ‘waiting time’, in terms of overall days that transportation trucks take to deliver.” He also shared that his factory in New Mumbai has noted reduced time in transporting goods as now there’s less traffic on the route due to the removal of check posts.

Earlier, a truck used to take 5 to 6 days to deliver products from Delhi to Mumbai and now it takes only 3 to 4 days for the same. It is being said that exporters will get an edge in terms of providing shorter lead time to the buyers post the exclusion of check posts.

Citing an example of reduction in transportation time of his containers reaching Cochin in less than 6 hours against 12 hours, Raja M Shanmugham, President, Tirupur Exporters Association (TEA) said, “Time-saving is one aspect but down the line cost benefit should be there which will serve the purpose of GST and that will be clear in the coming months.”

 

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