India Regulatory Advisory for Supply Chain & Logistics Companies

Supply Chain & Logistics in India: The Compliance Landscape

India's logistics sector is transforming rapidly — with the PM Gati Shakti National Master Plan, the National Logistics Policy, and GST unifying the previously fragmented state-level tax structure. For foreign logistics companies, India represents a major growth opportunity as Indian manufacturers increasingly outsource their supply chain operations. However, the combination of multi-modal transport regulations, customs law, state-specific road permits, and a complex GST framework for logistics services requires specialist advisory.

Services for Supply Chain & Logistics Companies

India Subsidiary Formation for Logistics Entities

Foreign logistics companies typically establish a Private Limited Company for their India operations. Key considerations include FDI sector classification (logistics is under automatic route with 100% FDI permitted for non-airport handling), multi-state GST registration requirements, and the interaction between corporate structure and licences required under the Motor Vehicles Act and Customs Broker Regulations.

GST for Logistics & Transportation Services

GST treatment of logistics services depends heavily on mode of transport and whether the service is domestic or international. Road transport by GTA (Goods Transport Agency) is taxable under reverse charge for B2B transactions. Ocean freight, air freight, and customs handling have specific GST rules. We manage GST compliance for logistics companies including multi-state GSTIN registration, e-way bill compliance, and Input Tax Credit on fuel and vehicle maintenance.

Customs Duty & Trade Facilitation Advisory

Customs brokers and 3PL operators in India work at the intersection of customs law and client cargo management. We advise logistics companies on AEO (Authorised Economic Operator) status application, customs broker licensing under the Customs Broker Licensing Regulations, and duty drawback claim procedures for logistics clients managing exports.

Transfer Pricing for Logistics Related-Party Transactions

Global logistics companies with India entities providing freight forwarding, warehousing, and last-mile delivery services to overseas affiliates require transfer pricing documentation. We prepare arm's length analysis for intra-group logistics service agreements, management fee arrangements, and shared cost structures.

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