GST has a major impact on the logistics sector and thus it has also impacted International Trade. Logistics plays a crucial role in metals industries and thus GST also greatly impacted metals and mining industries. To establish a thread between Logistics, International Trade and Metals via GST, The Bengal Chamber organized the Trade & Logistics Conclave - Post GST Regime on 10th January 2018 in the Chamber premises.

Like all other industries in India, GST impact on logistics and supply chain is bringing some major changes in the way these domains operate. Logistics sector is seen as a major gainer in the GST Regime. Logistics is a small but major part of supply chain management that concerns the administration of goods distribution in an efficient manner.

While costs might rise owing to compliance and adjustment issues with increasing frequency of filing returns, the operational efficiency in the long run is expected to improve. The impact and overall cost benefits of GST will additionally vary widely across industries.

The implementation of the Goods and Services Tax (GST), with effect from July 1, has immensely benefited the domestic steel industry as it has improved the sector’s competitiveness and reduced the transportation time by up to 45%. Under the new tax regime, the cost of raw material is set to come down as the GST rate for iron ore, a key steel-making raw material, and other inputs have been kept at 5% from around 11-12% now. This will further add to the competitiveness of the Indian steel sector. Previously, whenever a steel product had to cross a state border, there were a number of check posts which resulted into delay of supply of goods to the customer. Under GST, a unified standard rate of tax has reduced cost and delay.

It is estimated that close to 40-45% time-saving will happen in transportation time. The Cabinet has approved the National Steel Policy 2017 that envisages Rs. 10 lakh crore investments to create more capacity in the steel sector. The development is significant as the steel sector is reeling under weak demand and rising raw material prices. The policy also aims at increasing supply of domestic coking coal to cut dependence on imports by half and production of 300 million tonnes by 2030. However, in the non-ferrous segment, the non-ferrous metals industry (Aluminium, Copper, Zinc, Lead, Tin and Nickel) is looking for a level-playing field against the surge in imports due to inverse duty structure as well as dumping of cheap subsidized goods from China. The situation has been aggravated by India having the FTAs with ASEAN countries, which allows duty free imports of finished goods. Technology and innovation will play an important role in achieving sustainable growth and impacting competitiveness. Today, mineral and metal industry across the globe is facing a serious economic crisis due to continuous fall in commodity prices, depleting raw material sources, non-availability of high-grade ores, stringent environmental rules and societal expectations. It is important to understand how trade policies and logistics infrastructure would be instrumental in the growth of various industries including the mining and metals industry of the country.

Shri Anant Swarup, IAS, Joint Secretary (Logistics), Department of Commerce, Ministry of Commerce and Industry, Government of India graced the occasion as the Chief Guest. Ms. Sunita Sindwani, Chief General Manager, EXIM Bank and Mr. Shivaji Narvekar, General Manager – National Marketing Division, ECGC joined as Guests of Honour. Other eminent speakers were, Mr. Malay Chatterjee, Safesea Steamship Pvt. Ltd. /Former Chairman KIOCL Ltd. /Adviser, West Bengal Mineral Development and Trading Corporation Ltd; Mr. P K Mishra, ED (M- Special Initiatives & Steel Processing Units), SAIL; Mr. T.B. Chatterjee, Chairperson, Indirect Taxes Committee, BCC&I and Chief Corporate Officer, Legal and Corporate Affairs, DIC India Limited; Mr. Sunil Agarwal, Managing Director, Manaksia Aluminium Co. Ltd.; Mr. Kalyan Mitra, Executive Director (Projects), Engineering Projects (India) Ltd.; Col J Akhtar, General Manager, Engineering Projects India Ltd. and Mr. Surajit Majumdar, General Manager - Supply Chain, Exide Industries Ltd. The Summit also witnessed the participation of a large audience and eminent professionals in International Trade and Metals and Mining sectors and was widely covered in different media.