Road Transport industry is expecting significant changes in the upcoming GST Council meeting: AITWA

MUMBAI: Long standing request from All India Transporter’s Welfare Association (AITWA) to reduce trucks from 28% to 18% as trucks are not luxury nor sin goods

Similar truck tyres currently under 28% should be rationalized to 18% was a request by the body 

“We hope there will be reduction of GST on trucks. With this we anticipate a fresh wave of truck purchases by small truck owners who were slowly becoming unviable. India’s trucking backbone is the small fleet owners and their well being would finally be taken care of.”, says Mr. Abhishek Gupta, General Secretary AITWA

With the increase in trucks on the road we are confident that logistics cost will reduce in coming quarters and there would be a level playing field for all stakeholders.

“We are hopeful that the GST Council shall give the due importance to the trucking industry and take some positive steps to boost the demand of trucks by reducing GST rates to 18% in the upcoming Council meeting. This will also help boost India’s self reliant demand over exports.”, says Mr. Ashok Goyal, National President, AITWA

Currently members are delaying purchases which may impact in the short term but I don’t foresee any reduction in demand going forward, added Mr. Goyal

An important step needed by the GST Council is to clear the compliance burden on the sector and a smooth transition the new tax regime will be essential to minimise litigation penalties etc 

AITWA has also made strong representations to ease eway bill related compliance which is draconian for the economy. Simpler and smooth logistics will ensure India becomes more resilient to become a $5 trillion economy, emphasized Mr. Abhishek Gupta