New Delhi: The government’s move to withdraw the GST exemption on export freight at the beginning of the month has irked exporters as they expect liquidity crunch at a time when they are dealing with weak demand in advanced countries. Which inspires them to watch it again. ,
From October 1, a 5% GST will have to be paid on sea freight, while exports by air bill to customers in India attract a levy of 18%.
While officials have argued that there was no need to extend the benefit, given that the refund process has been eased, exporters argued that it may take up to three months, if not more, to get the money back. The process is not complete till the return is filed and the filing deadline is till 20th of every month for transactions in the previous month. Exporters said with rising interest rates and longer payment cycles for overseas buyers, there was a need for additional liquidity. “The bearish trend has given rise to stiff competition from other countries in the international market. , , International buyers have started delaying in accepting orders. Thus, the inventory cost in placing the export consignments in India is also increasing,” said Apparel Export Promotion Council President Naren Goenka,
He and other exporters have argued that the freight cost will increase. “The non-extension of the notification has added to the panic and uncertainty in the liquidity challenges of exporters…Foreign cargo has increased by 300-350% from pre-Covid levels and although freight rates have improved slightly recently, freight rates are still 200-250% higher than 2019 levels,” FIEO President A. shaktivel FM. said in a letter to Nirmala SitharamanWhen seeking extension.
Tax businessmen also demanded government intervention. “If the exemption has not been extended or alternatively” ITC of IGST Not allowed, it could become the death knell of Indian shipping lines and freight forwarders,” said the tax lawyer. RS Sharma,
From October 1, a 5% GST will have to be paid on sea freight, while exports by air bill to customers in India attract a levy of 18%.
While officials have argued that there was no need to extend the benefit, given that the refund process has been eased, exporters argued that it may take up to three months, if not more, to get the money back. The process is not complete till the return is filed and the filing deadline is till 20th of every month for transactions in the previous month. Exporters said with rising interest rates and longer payment cycles for overseas buyers, there was a need for additional liquidity. “The bearish trend has given rise to stiff competition from other countries in the international market. , , International buyers have started delaying in accepting orders. Thus, the inventory cost in placing the export consignments in India is also increasing,” said Apparel Export Promotion Council President Naren Goenka,
He and other exporters have argued that the freight cost will increase. “The non-extension of the notification has added to the panic and uncertainty in the liquidity challenges of exporters…Foreign cargo has increased by 300-350% from pre-Covid levels and although freight rates have improved slightly recently, freight rates are still 200-250% higher than 2019 levels,” FIEO President A. shaktivel FM. said in a letter to Nirmala SitharamanWhen seeking extension.
Tax businessmen also demanded government intervention. “If the exemption has not been extended or alternatively” ITC of IGST Not allowed, it could become the death knell of Indian shipping lines and freight forwarders,” said the tax lawyer. RS Sharma,