Govt ends GST exemption on export transportation from Oct. 1
As the government has reportedly decided not to extend the GST exemption beyond September 30, 2022, ocean and air freight exports are set to attract GST at the prescribed rates, it is learnt.
However, there has been no proper communication on this from the relevant authorities, say sectoral players.
AMTOI intimated in a circular late last week that there has been no extension granted through notification till the time of its drafting. Without such an official communiqué, Export Air Freight and Export Ocean Freight will attract GST.
For Export Ocean Freight - services by way of transportation of goods by a vessel from Customs station of clearance in India to a place outside India – the tax rate shall be 5% - Clause (ii) of Serial No. 9 of Notification 8/2017 – Integrated Tax (Rate). Provided that credit of input tax charged on goods (other than on ships, vessels including bulk carriers and tankers) used in supplying the service has not been taken (condition same as for Import freight services) – SAC Code 996521.
For Export Air Freight - services by way of transportation of goods by an aircraft from Customs station of clearance in India to a place outside India – the tax rate shall be 18% - Residual clause (vii) of Serial No. 9 of Notification 8/2017 – Integrated Tax (Rate) – SAC Code 996531.
Source: Exim News Service: New Delhi, Oct. 3