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The Goods and Services Tax (GST) introduced by the GOI which came in effect from July 1, 2017, is changing the way trade is being conducted across India. Now, FAStag Toll collection has joined the race of cutting trade cost and travel time. The GST and FASTag are transforming the trade in India. \n
India is poised to become a leading market in the world because of its advantages that are
composed of many factors like demographics, the purchasing power of populace, and so on. The
role of government in this scenario should be of regulator and facilitator. To make things occur
in favour of traders and businesses, the Government of India (GoI) has been coming up with
landmark legislation and problem-solving processes. Among them, Goods and Service Tax
(GST) and FASTag can be considered as the game-changers without a doubt.
Almost every government department is aiding to this momentum through their innovations and
services. The onus of facilitating a seamless movement of goods is on the Ministry of Road
Transport and Highways along with its allied wings like National Highways Authority of India
(NHAI) and Indian Highways Management Company Limited (IHMCL). According to reports,
the National Highways carry 40% of trade in the country, although they constitute only 1.7% of
the Indian road network. To facilitate a smooth trade, the MoRTH and NHAI are leveraging
technology in the best possible way. The National Highways Authority of India (NHAI), which
is entrusted with the development and maintenance of National Highways in India, has been
upfront in assimilating technology into processes.
The recent addition to the NHAI’s list of innovations is FASTag, which operates on Radio
Frequency Identification (RFID) technology. FASTag, which is developed by the National
Highways Authority of India (NHAI) with its technology partners, also referred as Electronic
Toll Collection (ETC) is also aimed to cut the transport time, costs, and to reduce congestion at
National Highway Toll Plazas. Recently, the FAStags reached the one million Mark, hinting at a
The landmark GST act which is in force from July 1, 2016, is transforming the way trade is
happening within the boundaries of India. The GST subsumed many state-level taxes like
OCTROI tax, entry tax, and other miscellaneous taxes; this has paved the way for
truckers/traders to enjoy the hinder-free movement of goods across states. The Ministry of
Finance has come up with the EWAY bills, which will lay off the burden of separate clearance
for each State. Due to these active measures of the GoI and incorporation of FASTag toll
collection, the freight transportation cost fell by 20% and will continue to fall, as it reduces the
time consumed in the transportation of goods, decline in pollution and inflation.
Both GST and FASTag are changing the dynamics of trade in India by providing the ease in
business processes. India is going to witness an increase in investments in the Logistics sector
soon, as many of the bottlenecks are being cleared by the Government of India.