Exporters call on FM Sitharaman to extend GST exemption on export freight

If the exemption is not extended, exporters will have to pay GST of 18% on export ocean freight, which will increase the logistical costs for Indian goods in global market

Led by the Federation of Indian Export Organizations (FIEO), India's worried exporters have written to Finance Minister Nirmala Sitharaman requesting an extension of the previously-granted exemption from the Goods and Services Tax (GST) on export freight, reported ET Infra. They claimed that failure to grant the extension "will compound their liquidity challenges."

Since its introduction in 2018, the government extended the exemption from GST on export freight twice. The most recent extension, which lasted for two years, concluded on September 30, 2022.

If the exemption is not extended for another term, exporters would be required to pay 18 per cent