Logistics stocks rally up to 10% after Jaitley sticks to July 1 GST rollout

Shares of logistics companies such as VRL Logistics, Snowman Logistics, GATI and Allcargo Logistics etc advanced up to 10% in an otherwise flat market after Finance Minister Arun Jaitley announced that switch-over to Goods and Services (GST) will happen from June 30 midnight, and that industry must be prepared for short-term challenges on GST rollout.

Snowman Logistics surged as much as 9.7% to Rs 59, while VRL Logistics rallied 6% to Rs 352 on the BSE. Gati hit an intraday high of Rs 133.60, up nearly 7%, while Allcargo Logistics also rose 3%. 

Blue Dart Express, Tiger Logistics and Kesar Terminals & Infrastructure were also up in the range of 1-3%.   

While addressing the media in New Delhi, Jaitley said GST should have a positive impact on the GDP. Over medium to long term, revenues of Centre, states will grow; size of the formal economy will grow too, he added. 

President Pranab Mukherjee, Vice President Hamid Ansari, Prime Minister Narendra Modi and former Prime Minister Manmohan Singh will be among those who will attend the special event, Jaitley told the media here.

Meanwhile, on Sunday,  GST Council decided to introduce the new indirect tax system from the midnight of June 30-July 1, but gave a relaxed timetable and exemption from penalties and late fees to industry while filing returns in the first two months. CLICK HERE FOR THE FULL REPORT