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GST Affect: Goods move faster, apparel industry to reap benefits

GST has started showing results. It 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. Removal of check posts will help the Indian garment industry. Not only will Indian apparel exporters get more time costs are also likely to come down as logistic companies will now charge less for waiting time in terms of overall days that transport trucks take to deliver.

Earlier, a truck used to take five to six days to deliver products from Delhi to Mumbai and now it takes only three to four days. Exporters can expect to get an edge in terms of providing shorter lead time to buyers post the exclusion of check posts. Containers from Tirupur reach Cochin in less than six hours against 12 hours. There is less traffic on the route. However, time-saving is one aspect. Down the line the industry expects cost benefits too, and whether that will happen will be clear in the coming months. For almost 15 days after the implementation of the Goods and Services Tax, the industry had observed strikes and protests all over the country.

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