‘I wish there was no GST on export freight in India’

In order to support the New Logistics Policy (NLP), the industry expected the government to extend the Goods and Service Tax (GST) freight exemption notification. However, this has not happened,” said Vipin Vohra, Chairman, Continental Carriers Pvt Ltd. “We genuinly think that this will have a significant financial impact on the freight industry. This move will increase the freight cost and create unnecessary burden on exporter. It is unclear how this action can push the goal of the Commerce Ministry, which introduced NLP with the sole aim of reducing logistics costs and wants every district to identify and encourage export of atleast one product. Also, our industry is still struggling to make a comeback post pandemic and unnatural crisis like Ukraine Russia war. Now onwards, logistics companies will have no choice but to levy 18 per cent GST on air freight and 5 per cent on ocean freight from October 1, 2022 onwards till the notification is issued. I wish there was no GST on export freight and freight forwarding in India, as it is in the majority of other countries,” he added.