‘Delays in refunds, complex documentation, data mismatch between GST returns & shipping bills hinder ops’

Vipin Vohra, Chairman, Continental Carriers says, “Following the launch of GST in 2017, export air cargo was exempted from GST, starting January 2018. However, this exemption ended on October 1, 2022, imposing an 18% GST on air freight. Trade bodies have urged the government to reinstate this exemption, aligning with global practices where export freight services are zero-rated. The lack of exemption has distressed Indian freight forwarders, raised costs for exporters, and hindered cash flow, agents are calling for a permanent exemption. Cargo agents in India face significant challenges in obtaining GST reimbursements for export shipments. Delays in refund processing, complex documentation, and data mismatches between GST returns and shipping bills hinder smooth operations. Additionally, ambiguities in eligibility for Input Tax Credit (ITC) and blocked credits strain cash flows. The high compliance burden, coupled with inconsistent interpretations of GST laws, further exacerbates the issue. Expedited refunds, automation, clear guidelines, and a single-window grievance mechanism are essential to resolve these struggles effectively.”