Cabinet clears crucial parts of GST bill; logistics stocks surge

Introducing major indirect tax reforms, a transparent tax system by the removal of interstate tax barriers, the Goods and Services Tax (GST) bill is all set to get the markets surge. The bill is also likely to lower the structural inflation and raise government tax revenues. 

The GST bill struck the logistics stocks to reach high rise on March 20, 2017, as the cabinet approved the Compensation Law, the Central-GST (C-GST), Integrated-GST (I-GST) and Union Territory-GST (UT-GST) proposed under the cited bill.      

As an impact of the approval, logistics market leaders like GATI, Snowman Logistics, VRL Logistics, Allcargo and and patel integrated savored significant gains on sensex.  

As on March 20, 2017, GATI gained on its stocks by 3.83 per cent, trading at Rs 143.75 on the bourses. While, Snowman Logistics' stock price increased by 2.92 per cent, trading at Rs 66.90 on the bourses. VRL Logistics gained by 1.52 per cent on the stocks, trading at Rs 304.75, whereas, Allcargo was up by 0.97 per cent, trading at 171.00 on the bourses on the same day.      

The bill's draft has received the approval of the central and state government authorities on Friday, March 17, 2017 for the nationwide implementation of the bill from July 1, 2017.