Important new legislation in India is the Goods and Services Tax (GST). The GST Act bill was first adopted by the Rajya Sabha on August 6, 2016, and then by the Lok Sabha on August 8, 2016. On July 1, 2017, the legislation will go into force. All value creation is subject to the Goods and Services Tax (GST), which is a multi-stage, destination-based tax. Products and services are subject to this kind of tax based on the location of the final consumer. It is proposed that all steps, from manufacturing to consumption, be taxed, with the potential to reclaim taxes already paid. In a nutshell, the final customer is liable for all taxes, and value added to a product or service is subject to taxation.

Input Tax Credit (ITC) was made accessible across the whole value chain, and the government benefited greatly from this since GST consolidated a broad range of national and state taxes on most goods and services. The number of tax brackets has decreased to a historic low. The creation of a consolidated digital platform for use by taxpayers is also well underway.

More than 26 months and many policy changes later, it seems that not everything has gone as planned. This, however, was not completely out of the question, and the government was prepared to suffer short- term losses in exchange for long-term gains. The tax rates and number of tax bands under India's Goods and Services Tax (GST) are among the highest and most extensive in the world. The rising technical and regulatory obstacles only make life more difficult. The government has enhanced the GST collection goal to Rs. 1.10 crore per month commencing in December 2019 to guarantee revenue collection according to objectives. It is the duty of GST officers to ensure that the appropriate GSTR-1 and 3B returns are filed if penalties or fines were waived at a recent GSTC meeting. Taxpayers who want to avoid penalties must come forward and file their returns by January 10, 2019. The existing GST cannot be considered flawless since it does not apply to all products and services, there are difficulties to collecting input tax credits, and GST rates are often skewed.

Trucking (including both freelance drivers and large fleets), storage and warehousing, and third-party logistics (3PL) are just a few of the numerous subsectors that make up the logistics business. Large and small businesses, as well as asset-heavy and -light businesses, are subsets of these categories. Government reforms, ambitions to expand the transport sector, increased retail sales, and the rise of the e-commerce sector are all projected to contribute to India's solid economic growth, which in turn will boost the logistics industry in the nation. Online freight platforms and aggregators are quickly growing in India's logistics business due to low entry barriers and reduced capital expenditure. A well-planned communications campaign is necessary to inform businesses, consumers, and key intermediaries including tax practitioners, the tax administration, and the political class about the new GST system. As

manufacturing in India grows to make up 25%-30% of GDP by 2025, the country's warehousing industry will also expand. It is projected that India's logistics market would grow by 10.5% between 2019 and 2025.

Since the goods and services tax (GST) has replaced the various state VATs, businesses no longer need a presence in the heart of many states' economies. Because of this, companies may reevaluate their current supply chains and set up centralised hubs to take advantage of economies of scale. Organisations now have a centralised location from which to take advantage of time-saving procedures like bulk-breaking and cross-docking. Nagpur, India's "zero-mile city," is receiving a flood of investment from retailers and warehouse corporations banking on GST's overhaul of the nation's logistics environment. They anticipate that Nagpur will become the "nation's warehouse." Warehousing, storage, and other manpower services were formerly taxed at 15% but will now be taxed at 18% due to the GST. As a result, there is now more motivation for a 3PL to go towards providing services that involve substantial value addition and for which input tax credit may be claimed. This might lead to mergers and acquisitions within the warehousing and storage sector.

It is still possible to employ the "reverse charge mechanism" for transport services, but the taxpayer will not be able to claim an input tax credit since the main expenditure in providing such services, petrol, is not subject to GST. This might be useful for medium-sized transportation businesses who have trouble submitting their taxes every 20 days. However, this may have consequences for businesses that make use of transport services but are subject to taxation in the event of a service charge but are unable to claim a corresponding input tax credit. Because of the possibility of key companies exiting the pure transportation sector and entering into additional value-added services, the industry may be disrupted by difficulties in negotiating and paying for transport services.

Logistics is one sector that stands to gain from the new GST regulations. The increased frequency of filing returns and the necessity for compliance from all players in the value chain to claim the input tax credit would initially lead to an increase in compliance and adjustment expenses. The industry's short- term profits will take a hit, and the climate will become more volatile. There will inevitably be improvements in operational efficiency. Logistics costs for producers of nonbulk items might be reduced by as much as 20% under GST, despite the fact that GST would do little to fix the fundamental problems with India's transportation infrastructure. Therefore, the effects and net cost savings of GST would differ significantly across industries.