GST unveiled: Warehousing industry to see reorganisation

Warehouses will move to consumption-and-transportation network areas

The 1.2 billing sq ft domestic warehousing industry will see consolidation with the roll-out of the goods and services tax. Facilities will relocate to consumer-driven and transportation network areas from the current tax-friendly locations.

“We expect the warehousing space around consumption-driven areas comprising the four metros and mini-metros — Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Bengaluru, Hyderabad and Pune — to double after GST implementation from the current 600 million sq ft,” said Balaji V, CEO Contract Logistics, Avvashya CCI Logistics Private Limited.

“Till last year, logistics companies were not sure, but now many have already devised strategies to create large