India’s harried exporters led by the Federation of Indian Export Organisations (FIEO) have approached Finance Minister Smt Nirmala Sitharaman seeking extension of previously granted exemption from Goods and Services Tax (GST) on export freight, citing that a non-extension “will add to their liquidity challenges” The exemption from GST on export freight was extended twice by the government after it was introduced in 2018 and the last extension ended on 30 September 2022 after a two-year run.
Exporters will have to pay GST of 18 percent on export ocean freight if the exemption is not extended for a further period which would raise the logistics costs for Indian goods in the global market, says exporters.
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