Truck owners want the government to fix the minimum freight rate for the truck sector.The demand for minimum guarantee freight was first made by SK Mittal, President, All India Motor Transport Congress, the parent body that represents the truck industry across the country.
Mittal said that the government should provide cost per km so that small operators will benefit in the long run. Excess vehicles on road and lesser cargo to carry have created a major demand-supply problem. Clients often exploit this situation and pay low freight, which is just enough to break-even.
Anath Swarup, Joint Secretary, Logistics, a division at the Commerce Ministry said that fixing of freight should be left to the industry and not the government. Stakeholders in the industry should come together to fix the cost per km.
Ramesh Agarwal, President, All India Transport Welfare Association, said the organised sector has come under GST, but not the unorganised due to lack of awareness and understanding of the taxation system. A trucker can save nearly 8 per cent of the cost by registering under GST. The industry is dominated by the unorganised sector with one or two vehicle owners having 80-85 per cent of the vehicles.Organised players have benefited a lot by way of Input Credit and the eWay bill. The introduction of fuel price under GST will benefit the transporters even further.
Shridhar Sharma, General Manager (Retail Sales), Delhi State Office, IndianOil Corporation, said that the move to include diesel in GST must be decided by the Centre through the GST Council, in which all State governments are present.
