GST on air freight is too high, say exporters
Indian exporters sending out things like fruits and veggies want the GST (Goods and Services Tax) on freight to be the same whether they ship by sea or air.
Right now, sea freight is taxed at 5%, but air freight faces a steep 18%, making exports pricier.
The GST Council is set to talk about this soon, as India looks to boost its "Make in India" efforts and expand into new markets.
Exporters want to reduce financial burden
Exporters like Kaushal Khakhar from Kay Bee Exports point out that air freight makes up most of their shipping costs, so the high 18% GST really squeezes their budgets.
He and others believe dropping it down to 5%—the same as sea—would ease financial stress without hurting government revenue, since many already claim refunds.
With India hitting $52 billion in farm and fish exports last year (including $6 billion to the US), keeping costs lower could help them compete globally.