News / India's air cargo market takes a hit as forwarders face 18% tax on exports

© Andrii Yalanskyi |

Indian airfreight forwarders are finding themselves in a cash flow squeeze amid heightened growth challenges, following the 18% Goods and Services Tax (GST) imposed on export freight charges.

The levy comes after the government removed exemptions on 1 October.

GST is a value-added tax on goods and services, implemented in July 2017 to eliminate the cascading effect of multiple taxes on supply chains.  But export transport costs were not included until now.

The forwarding community must now pay taxes on shipments handled on a monthly filing basis, ...