Roads ministry pegs truck owners’ savings from GST at Rs 30,000 crore a year
The initial ground surveys in the first month (July) showed that a truck doing a 2,000 km round trip in a week was able to save 40-45 hours of travel time.
The goods and services tax (GST) is likely to result in an annual saving of Rs 30,000 crore for truck owners and transport companies, an early assessment survey carried out by the road transport and highways ministry has found.
Following the roll out of GST, check-posts and barricades have been removed from state borders.
This has cut the travel time of trucks and other cargo vehicles on highways by almost 20%, the survey said, adding that a truck could save up to Rs 1.5 lakh a year as lesser travel time would mean lesser fuel consumption.
“The initial ground surveys in the first month (July) showed that a truck doing a 2,000 km round trip in a week was able to save 40-45 hours of travel time,” a top ministry official said.
“Per trip saving has been around Rs 5,000 on account time and fuel saved. Trucks are not languishing at state border check-posts anymore.”
The official said the total annual saving is likely to be Rs 30,000 crore. India has about 12 lakh trucks with national permits and almost the same number, with interstate permits.
Since the roll out of GST, most state governments and union territories have dismantled border check-posts operated by indirect tax administrations, reducing the time needed for the movement of goods across states.
Officials said the upcoming e-Way bill will boost the savings. The bill will help central and state governments keep a close eye on factory output and interstate transportation of goods, thus providing a more specific and accurate data related to consumption across the country, they said.
The bill will propose online registration of goods above a certain value that are being transported.