GST may trigger consolidation in warehousing space – Feedback

The goods and services tax (GST) regime could usher in consolidation in the Indian warehousing space, property consultants and analysts said.

With the government pushing for an April 2017 rollout of the single tax structure, many manufacturers who had built or leased warehouses in nearly every state to avoid duplication of taxes don’t see the need to extend their lease arrangements, and can instead own or lease large warehouses in a few strategic locations. Warehouses across the country mostly facilitate operations of ecommerce firms, automotive companies, and manufacturers of consumer electronics, pharmaceuticals and fast-moving consumer goods. These manufacturers are now looking at having fewer but larger warehouses at locations such as Mumbai, Delhi, Ahmedabad, Chennai, Bengaluru and Hyderabad.

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