Truckers had called for the strike in protest against the indifferent attitude of the government
Business worth Rs 600 crore was hit in the state as truckers began their two-day strike against GST on Monday.
Transportation of goods was affected, said industry sources. Truckers had called for the strike in protest against the indifferent attitude of the government. However, the recent meeting of the GST Council sorted out certain issues while some are still pending.
Truckers in Gujarat joined their 1.5 crore brethren across the country for the strike. Industry sources told DNA that the strike evoked a mixed response as it was not expected that trucks already in transit would participate in it. "However, new departures were affected. While it is difficult to quantify the losses, it can be estimated at Rs 500-600 crore," said Mukesh Dave, vice president, Western Region of All India Motor Transport Congress (AIMTC), which had given called the strike.
The recent rollbacks by the central government after the GST Council meet on Friday had eased pain points like the Reverse Charge Mechanism and e-Way bill, whose implementation was deferred till March 31, 2018. This also placated transporters to an extent.
However, the issue of 28 per cent tax while buying and selling of vehicles is not yet resolved. AIMTC said that the registration is coercive and many of the compliances unnecessary. An unregistered transporter has to pay GST while buying and selling of trucks. Also, GST needs to be paid even if the goods are shifted from one branch of the office to another.
AIMTC also suggested that diesel and toll expenses be brought under GST fuel expenses, constitute 50%, while toll expenses constitute 20% of truckers' total expenses. "The exorbitant rise in the price of diesel and daily fluctuations have brought the neck of the road transport sector," said AIMTC. The central government had announced a reduction in excise duty on fuel and had urged the state governments to reduce Value Added Tax (VAT) on the products. "Gujarat Chief Minister Vijay Rupani is ready to reduce VAT," said Dave.
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