Within the capital-intensive transportation sector, where inter-linkages are significant, the Goods and Services Tax (GST) is expected to impact the freight and logistics segments the most. Specifically, the provision of hard infrastructure (involving capital outlay) and provision of services (involving passenger and freight movement) would be the areas that would see maximum impact.
As we know, customers choose the mode of transport depending on cost and timelines. The impact of GST, therefore, will be a function of this interplay.
So how could the country’s biggest tax change impact the sector?
Overall, GST is expected to have an impact on