‘Deployment of capital will be a big challenge’

Parvinder Singh, Managing Director, Hans Infomatic said, “GST for airfreight is 18% and ocean freight is 5%. Now per kilo, the rate of ocean freight is much less than the airfreight. So there’s less tax burden. For sea freight forwarders’, it will be very miniscule but for air cargo sector, its huge. The forwarders can take reimbursements, but it will be reimbursed in three to four months’ time. So, the working capital will be blocked and also everyone cannot claim the taxes back from the government. With high airfreight rates and working capital under pressure, the deployment of capital will be a big challenge. Only big freight forwarding companies will be able to handle it and survive.”