No Extension to GST Freight Exemption Will Have Financial Impacts: VIPIN VOHRA
“In order to support the New Logistics Policy, 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 of Continental Carriers.
“I, along with the industry players, genuinely think that this will have a significant financial impact on the freight industry. This move will increase the freight costs and create an unnecessary burden on the exporter. It is unclear how this action can push the goal of the Commerce Ministry, which recently launched NLP with the sole aim of reducing costs and wants every district to identify and encourage the export of at least one product. Our industry is still struggling to make a comeback post-pandemic and unnatural causes like the Ukraine-Russia war.
From 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 continued.