Logistics Hub Essay

980 Words4 Pages
Competitive Advantage of Nagpur as a Logistics Hub Post Implementation of Goods and Services Tax Tanay Salpekar1, *Arpit Bendle1, Utpal Chattopadhyay 2 1Student, PGDIM, National Institute of Industrial Engineering (NITIE), Mumbai, India 2Associate Professor, Economics and Strategy, National Institute of Industrial Engineering (NITIE), Mumbai, India ________________________________________ Abstract: This paper aims to study the impact of Goods and Services Tax (GST) on the logistics and warehousing industry in India and the emergence of Nagpur as a logistics hub post GST implementation. It briefly analyses the current warehousing and logistics hubs across India and identifies the specific advantages as to why they emerged as prominent locations. The paper studies the change in scenario after implementation of…show more content…
It will be levied at every stage in the supply chain and all the taxes paid previously will be credited. GST will be levied in two parts, State GST (SGST) and Central GST (CGST) to ensure proper revenue sharing between the central and state governments. Implementation of this tax reform is expected to end the drawbacks of the current tax system such as the cascading effect of taxes etc and thus lower the overall tax rate. Similar tax systems have already been implemented in multiple countries which have witnessed significant growth in their economies because of the same. Currently, the warehousing and logistics decisions in India are primarily based on tax saving considerations rather than on achieving operational efficiency. GST will encourage consolidation of warehousing facilities allowing automation and exploiting economies of scale. Companies will then try to achieve operational efficiency by aligning their sourcing, manufacturing and distribution strategies with

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