With the Goods and Services Tax, the new indirect tax regime, likely to come effective from July, shares of logistics companies are faring reasonably well in the market.
The logistics sector will be among the key beneficiaries of the GST, as its implementation will help remove inefficiencies in interstate taxation and check posts, thus encouraging third-party logistics in India, reducing compliance cost, reduce the number of warehouses and allow tax credit across the chain.
Patel Integrated Logistics, Sical Logistics, Aegis Logistics, GATI, VRL Logistics and Snowman Logistics are trading higher by 1% - 2.3%. Bluedart Express and Allcargo Logistics are up with modest gains, while Container Corporation, Navkar Corporation and Gateway Distriparks are down marginally.
