The logistics sector attracts GST rate of 18%, up from 15% in the previous tax regime. Photo: Ramesh Pathania/MintThe logistics sector broadly comprises the road transport sector (consisting of unorganized small businesses, trucking, fleets and large transport companies), the storage and warehousing sector and finally third-party logistics (3PL). Between 2010 and 2015, PAT has declined for all sub sectors and shows volatility for the logistics and the storage sector (see graphic). PBITDA is an important measure that reflects operating efficiency and ranges between a low of 7% for the road transport sector to a high of approximately 20% for the storage sector. According to V. Ramaswamy, chief executive officer of Cargowings logistics, a leading transport solutions provider in Chennai, “GST will bring a lot of alignment of value-added services in the logistics sector.

Source: Mint August 08, 2017 00:45 UTC