GST on services by way of transportation of goods by
aircraft/vessel is certainly on a roller-coaster ride these days.
The story began in September 2022, when certain exemption entries
pertaining to goods transportation services witnessed a sunset from
1 October 2022 onwards. This resulted in taxing the transportation
of export cargo by the Indian transporters/freight forwarders,
liable to Integrated GST (IGST), which generated a buzz amongst the
exporters as well as the Indian transporters/freight forwarders.
Consequently, owing to the hardships, various associations and
trade bodies filed representations before the government against
the withdrawal of GST exemption.
The following challenges were faced by the Indian
transporters/freight forwarders:
