Dinesh Krishnan, Chairman, ACAAI Southern Region says, “The global and Indian freight forwarding industry operates within a framework of strict national and international regulations. A significant proportion of the industry comprises SME’s, dedicated to addressing the diverse and dynamic needs of the export and import communities which are again a major SME sector. In recent years, GST administration and compliance regulations have imposed considerable challenges for the logistics industry in tax administration and compliance. A lack of nuanced understanding of the sector’s unique operations by policymakers, coupled with poor coordination between central authorities and state level tax administrators, has left the industry grappling with uncertainties and inconsistencies. The introduction of GST on international freight has particularly disrupted the industry’s financial stability. It is a revenue neutral manufacturing / trading EXIM customer’s tax burden, imposed on the freight forwarding community in the form on GST on air and ocean freight.  This has created an artificial financial crises and fund flow strain by locking freight forwarders business funds with the government and waiting for GST credit offset or refunds on GST for overseas billing. Crores of freight forwarders funds are stuck with GST refunds, beside rampant notices from the authorities, creating a liquidity tsunami and more expenses on tax administration across the country. The consequences have been severe since the GST on freight, numerous freight forwarders have shut down, while others are being driven out of business unbale to a bare this burden on blocked funds & tussle with GST authorities. This attrition risks leaving the burgeoning EXIM (export-import) trade reliant on a limited number of service providers, potentially creating monopolistic conditions and supply chain inefficiencies in the long term. Immediate action …

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.”

Sunil Kohli, Managing Director, Rahat Cargo says, “Our government has all along been encouraging the shippers to accelerate their export activities which creates an economical growth within the country apart from yielding substantial foreign exchange. However, levying a GST on export products has resulted in an additional & avoidable financial liability on the exporters majority of whom have already been facing the fiscal roadblocks on various heads. And consequently, the businesses especially the SMEs have to encounter enhanced compliance requirements with multiple deadlines leading to higher administrative cost. The GST has many complexities with assorted tax rates & rules making it difficult for an average exporter to navigate without professional assistance which entails extra expenses. Moreover, certain products & services have become more expensive due to higher GST. Also, the GST portal has frequent technical glitches. It is therefore felt that the exports should be kept out of the GST regime.”

Arun Kumar, President, Association of Multimodal Transport Operators of India (AMTOI) says, “Rent-seeking behaviour is detrimental to any economy, especially one aspiring to be the third largest globally. Imposing taxes on exports or their components undermines cash flow for the MSME-dominated freight forwarding sector, which operates on razor-thin margins of less than 2%. With an 18% GST outlay and delayed reversals, their margins are decimated. This ill-conceived levy under GST is crippling agri-exports by air and jeopardizing the freight forwarding community’s survival.

Satish Lakkaraju, CEO, NexGen Logistics, Garudavega shares, “The introduction of 18% GST on air freight is significantly impacting the trade, logistics, e-commerce sectors, and causing distress among cargo agents and courier companies. This tax hike is driving up operational costs, resulting in higher freight charges for both businesses and consumers. Additionally, C2C (customer-to-customer) customers are unable to claim GST credit, making it an additional, non-recoverable cost. Since ocean freight is taxed at 5%, we recommend reducing the GST on air freight to be 5% as well, ensuring parity and easing the financial burden across the industry.”

“The imposition of 18% GST on air freight is a major setback for the trade, significantly increasing logistics costs and hampering India’s competitiveness in global markets. Cargo agents are deeply distressed, as this move threatens their sustainability amidst already tight margins. Lot of money / refund is pending of agents as the process of refund is manual and time consuming. The industry urges the government to reconsider this decision to promote ease of doing business and support India’s vision of becoming a global logistics hub.”

Adani Gangavaram Port inaugurated its new Railway Crew Lobby with a modern Crew Management System (CMS) facility at its R&D yard to significantly enhance cargo handling, storage, and dispatch operations. The facility was inaugurated by Manoj Kumar Sahoo, DRM, Waltair Division, East Coast Railway, in the presence of the CEO of Adani Gangavaram Port and senior officials from the port and the railway sector.  By enabling railway crews to directly take charge of loaded trains from the port’s Receipt and Dispatch yard, this facility will streamline operations, minimize delays, and increase crew availability and mobility. An official statement by Adani Gangavaram Port stated, “We are extremely delighted on the inauguration of this Railway Crew Lobby indicates a vital moment in our commitment to operational excellence and the well-being of our valued railway crew. This state-of-the-art facility expresses our dedication to enhancing safety, comfort, and efficiency within our operations. By providing a modern and well-equipped space for our crew to rest and prepare, we empower them to perform at their best, ensuring the safe and timely movement of goods across our network. This investment underscores our unwavering focus on continuous improvement and our commitment to playing a vital role in India’s thriving logistics sector.”  

  The Delhi Customs Brokers Association (DCBA) received the CONCOR Exim Star Award for its outstanding trade facilitation initiatives in Delhi NCR region since its formation 62 years ago. The award was presented by Sanjay Swarup, CMD CONCOR in a glittering Customer Felicitation Day held recently.  Large number of cargo and logistics industry fraternity, and government officials from the Ministry of Railways/other allied ministries participated. “This special day is our humble attempt to express our sincere gratitude for the trust you have placed in us. Your continued partnership has been the cornerstone of our success and has empowered us to become a leading name in logistics solutions,” said Swarup. Devendra Singh Bhadoria, President DCBA said that this recognition shows strong bond between DCBA and CONCOR in facilitating the EXIM trade. He also commended CONCOR for its valuable end-to-end logistics services to the Exim trade across the country. Bhadoria assured full cooperation to CONCOR in achieving the Govt. of India’s target to reach a $5 trillion economy by 2027 and ‘Vikshit Bharat’ by 2047. Also, present on this occasion were DCBA Special Advisor N.G. Pillai, Vice President Ram Naresh Yadav, Hony. Joint Secretary, Rajesh Kumar Sharma, managing committee members Davender Lal Pipil, Mohit Sharma and Member Sumit Dhingra.

Chaitanya Projects Consultancy is developing the Detailed Project Report (DPR) for two signature bridges that will transform connectivity in the Chilika Lake region under the Bharatmala Project. These bridges will provide seamless and sustainable connectivity between Satapada and Janhikuda, addressing long-standing transportation challenges and driving economic and community development in Odisha. Chilika Lake, renowned as the largest coastal lagoon in India, has long grappled with unreliable transportation, impacting both local communities and tourism. The proposed bridges will seamlessly integrate modern infrastructure with ecological preservation, ensuring reliable year-round access while respecting the natural beauty of Chilika. “We are honored to contribute to a project of such transformative potential,” said Sanjay Kumar Sinha, Founder and Managing Director of Chaitanya Projects Consultancy. “The DPR for these signature bridges will pave the way for sustainable progress, connecting communities, unlocking economic opportunities, and boosting tourism. This initiative reflects our commitment to delivering impactful infrastructure that harmonizes with its surroundings and empowers generations to come.” Designed with eco-friendly and disaster-resilient solutions, the project emphasizes sustainability at every stage. Beyond improving connectivity, the bridges will create economic opportunities, stimulate tourism, and uplift livelihoods, aligning Chilika with Odisha’s broader economic vision. Chaitanya Projects Consultancy’s expertise in innovative and sustainable infrastructure solutions ensures that this project will not only meet immediate needs but also preserve the region’s ecological significance for the future.

The Indian government and the Asian Development Bank (ADB) signed a $350 million policy-based loan under the second sub-programme of the Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme. This agreement represents a pivotal step towards revolutionising India’s logistics sector. This initiative, in collaboration with the Department of Economic Affairs (DEA) under the Ministry of Finance, the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, and ADB, seeks to position India as a global leader in efficient, resilient, and sustainable logistics systems.