The implementation of GST brought the most substantial change to the indirect tax system of India by introducing a tax platform that is more transparent and convenient in functioning. Logistics industry was one of the many industries which were affected by the introduction of new tax regimes and it is expected to grow at a better rate in the near future due to the reduced tax liability. The current generation prefers a tech-savvy approach to keep a track on all aspects of their life as it enables them to receive faster and accurate information that affords some free time in the soaring busy lifestyle of people. Implementation of GST was one of such actions taken by the government in order to develop a tech-friendly tax structure that would help them to reduce tax liability and support the competitive power of Indian industries. The logistics industry has started to show profiting results under the new tax regime with the functioning cost reduced nearly by 30%-40%. It is considered to be one of the major beneficiaries of the latest tax regime (i.e. GST). There is a wide scope for addition of several value-added services to the logistics industry after the implementation of GST and this is helping the Indian logistics companies to globally compete on a higher level. But the new tax regime has not been able to provide a foolproof structure, which has resulted in the continued exploitation of laws for personal benefits. So, the paper addresses both the benefits and limitations of logistics industry under GST and would determine the appropriate changes needed to be brought into our tax system by drawing a comparison between a developed and developing nation with well-developed logistics sector.

Keywords: Logistics Performance Index (LPI), Developed and Developing Nations, GST, Unified Market.

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