GST on air cargo uncalled for: PHD Chamber

Tribune News Service

New Delhi, July 19

PHD Chamber of Commerce and Industry today urged the government not to impose GST on international freight as air cargo trade is already facing many challenges.

It argued that at a time when domestic civil aviation industry anticipates that India will be among the 10th largest international freight market by 2018, subjecting international freight at 18% GST was totally unfair as it will stifle the growth of air cargo.

The Chamber pointed out that all over the world, international freight was not taxable adding that Indian exporters need not be burdened with wrongly interpreted GST tax on international freight.

“Why would the Government of India want Indian exporters to pay extra 18% GST on freight and make our goods non-competitive in international market,” speakers at a summit here asked while stressing that even if GST to exporters are refundable by CENVAT credit, it is incorrect as again cost of export go up by financing GST and taking the refund as an administrative and financial cost.