Goods and Services Tax Bill is expected to be implemented in April 2017. One sector which is sure to benefit is the logistics sector in India. And we have seen many articles highlighting the reasons behind it as well. But here we will also highlight how Reliance Jio is going to do more for Indian Logistics’ modernisation.
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JIO will Enable Logistics Services in India
1. JIO will Enable
Logistics Services in
India
Goods and Services Tax Bill is expected to be
implemented in April 2017. One sector which is sure to
benefit is the logistics sector in India. And we have seen
many articles highlighting the reasons behind it as well.
GST is surely the biggest indirect tax reform since
independence. This tax will bring uniformity to the tax
structure by replacing a number of central and state
levies with a single unified value added tax system and
make us the world's biggest single market. It will also
increase the ease of doing business and even for the
government it will ensure a broader tax base and easier
tax collection. This law will also be hugely beneficial to
the Logistics Industry in India. The tax avoidance by
majority unorganized players creates a cost gap between
them and the organized players. With the introduction of
GST, every logistics company will be covered under a
uniform tax base, improving the cost competitiveness
between organized and unorganized players. Also, with
GST implementation, the interstate goods flow will be
faster and transit time will be lower. A natural
consequence will be higher truck utilization and an
increased usage of high tonnage trucks. This will further
bring down logistics costs and benefit not just logistics
companies but every stakeholder in the industry.
But here we will also highlight how Reliance Jio is going
to do more for Indian Logistics’ modernization.
Movement towards Video Proof: Jio’s introduction into
the logistics processes will ensure faster 4G connections.
This means that any logistics company will be able to
send a video proof of a delivery made. Any delays which
a trucker faces can also be communicated real-time to a
shipper who will then be encouraged to pay him
demurrage. Cams on the dashboard and rear cameras can
also be used to send across proof easier owing to a good
4G speed. All this means more accountability for the
shipper or transporter.
RTO’s will become more accountable as well: Now
there can be a number of YouTube videos of RTOs and
vehicle owners/drivers can video proof the transactions.
Lower Vehicle Tracking, IoT costs: This will happen
as using JIO one can send more data at costs it took to
send 2G data earlier at the same investment and enable
one to send images, video clips, document scans and
more. The free voice calls are an added advantage. This
will increase adoption of data services as well as smart
phones cost lesserthan dedicated GPS devices.
Providing so many services at such low costs of Rs. 50 a
GB- Rel Jio will not only revolutionize the way we all
communicate but will also be an enabler when it
comes to logistics industry in India.