Prices of commodities to shoot up as trucks go off roads

New Delhi: Protesting against the disruptive policies under Goods and Services Tax (GST),  truck owners and operators went on a 36-hour nationwide strike starting from 8 a.m. Monday.

The truckers' move is likely to disrupt the supplies of commodities and it could lead to a spike in prices of essential goods.

"The post GST scenario has critically impaired the transport trade. The leadership of All India Motor Transport Congress and other transport associations have proclaimed the two day token nationwide strike starting from 8 a.m. of October 9 (Monday) to 8 p.m. of October 10. We also support this," Calcutta Goods Transport Association`s President Prabhat Kumar Mittal told reporters in Kolkata. 

He said there was utter confusion, chaos and disruption due to varied policies under GST that are imposed on the road transport sector.

"The exorbitant increase in the diesel price and daily fluctuations are affecting the road transport sector. The diesel and tolls account for more than 70 per cent of operating cost of the truck, though diesel is out of GST. Diesel must be brought under GST top bring uniformity of diesel pricing across the country," he said.

Transporters also demanded the revision of diesel prices should be done on a quarterly basis.

According to them, confusions arose with the existence of Reverse Charge Mechanism (RCM) and Forward Charge (FCM) in GST system.

Transporters are not able to lift goods from unregistered traders as that would require transporters to pay GST on behalf of unregistered traders under RCM and they (transporters) can also avail FCM, where they need to pay 12 percent GST but claim full input credit.

"The contra laws in the present GST regime are leading to coercive registration and unnecessary compliances by truckers and transporters. The government has put options under GST double taxation in the RCM and FCM for 5 per cent and 12 percent respectively," said Tapan Bhaduri, Organising Secretary of Truck Owners` Association of Bengal.

He said the sale of used assets also attracts GST which leads to double taxation.