‘Levy of GST on exports will impact Ease of Doing Business’

Sunil Arora, Board of Advisors, The Air Cargo Agents Association of India (ACAAI) says, “Export freight was exempted through a notification since 2017. The Ministry of Finance dwelled upon logical reasons behind and gave continous extension till September 2022. Levy of GST on export freight will be a big deterant for Indian global economic scenario. PM initiatives like Gati Shakti, Make in India and Ease of Doing Business will be taking a reverse step. GST on export freight will make our exports commodities anti-competitive in the world market. India has just revived in fact survived the COVID setback, instead of supporting industry’s cash flow issues, exporters and freight forwarding fraternity will suffer serious cash flow setback and other compliance repurcurssions attached with refund mechanism….First subjecting freight to GST and then acknowledging refunds is not a wise workable financial module. In fact, it will add on more working complications and tedious lengthier accounting and financial management. We appeal for immediate attention of MoF and Honorable PM, we seek permanent zero rating on international freight, thus giving us a level playing arena in the global trade. None of our major export and logistics competitor nations have GST or VAT on export Air and Sea freight.”