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GST exemption on export freight ended on 30 Sep 2022. Exporters are worried and approached FM. 

Exporters will have to pay GST of 18% on export freight if the exemption is not extended further, which would raise the logistics costs for Indian goods in the global market.

As you can see from the below Notification No. 09/2017 - IT(R) as amended by Notification No. 07/2021 - IT(R) that exemption has ended on 30 Sep 2022.

Exporters have approached FM Nirmala Sitharaman seeking extension of GST exemption 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 and it recently ended on 30 September 2022. 

FIEO President Dr A Sakthivel, apprised Finance Minister Sitharaman in a 2 October email on the repercussions of ending the exemption.

“Overseas freight has gone up by 300-350 percent from pre-covid levels and though there is little correction in the freight rate recently, freights are still 200-250 percent more than at 2019 levels. Therefore, payment of GST on such high freight rates will affect the liquidity of the exporters to a large extent particularly as the interest rates have also moved northward with the recent hike by the Reserve Bank of India (RBI),” Sakthivel wrote in the email seen by ET Infra.

The payment of GST on export freight and subsequent refund particularly through ITC mechanism comes with a time lag of 2-3 months or so, though refund throug.......
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Oct 3, 2022

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