Shares of logistics companies are mostly up with strong gains today, with investors looking ahead to the outcome of the GST Council meeting.
VRL Logistics (1.5%), Navkar Corporation (1.4%), Allcargo Logistics (2.3%), GATI (3%), Patel Integrated Logistics (2.6%), Sical Logistics (2.6%), Gateway Distriparks (2.5%), Container Corporation of India (2.7%), and Snowman Logistics (4.5%) are up with impressive gains. Shreyas Shipping & Logistics and Arshiya are trading marginally up, while Aegis Logistics is slightly weak.
During the current meeting that will last three days, the GST Council will deleberate on issues such as Tax rate, Compensation Formula and Service Tax Assessment, among others. The tax rate is likely to be announced at the conclusion of the three-day meeting.
In an earlier meeting, the GST Council had finalised area-based exemptions and how most of the states in the North-East and hilly regions, will be treated under the new tax regime. Issues including finalisation of rules for registration, rules for payments, returns, refunds and invoices, have already been finalised.
Further, the Centre and states reached an agreement on keeping traders with annual revenue of up to Rs 20 lakh out of the new national sales tax ambit that will subsume all cesses. The council had also resolved issues over dual control over small traders, and decided that states will have exclusive control over all dealers up to a revenue threshold of Rs 1.5 crore in a year.