Warehousing industry positive on GST: CBRE

Noted real estate consultancy and research firm, CBRE, recently furnished the details of a survey underlining the mood of the logistics industry on the possible impact of GST on their businesses. According to the report, more than 63 percent of respondents from the warehousing space maintained that after GST is in place, cbretheir operational costs would decline. They are further hoping to consolidate their facilities. About 65 percent of respondents emphasized that it will take them anything between 3 to 12 months to align their business to the new tax regime.

However, about 25 percent of those interviewed said that it too early to predict the possible impact of GST on their business. Around 11 percent of the companies covered in the survey confirmed that they will switch over to hub and spoke model. “Once the GST comes into play, the focus of players is likely to be on supply chain efficiencies which will result in consolidation of warehouses. This will result in increased demand for larger, better quality warehouses thereby providing an ideal platform for the emergence of large scale nationwide players,” commented a senior official of CBRE.

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