MADURAI: The Tamil Nadu Chamber of Commerce and Industries submitted a memorandum to the finance and commercial taxes ministry ahead of the state Budget, urging the state government to take action towards the initiation of the Thoothukudi-Madurai Industrial Corridor and exempt IGST for export of logistics, among others.
In a release, TN Chamber president Dr N Jegatheesan stated that the Central Board of Indirect Taxes and Customs (CBIC) introduced the Integrated Goods and Services Tax (IGST) exemption on transport charges for goods exported from India by sea and air in 2018, and extended it twice. The last such extension was on 30 September 2022. Since this exemption has not been extended from October 2022, 5% GST has been levied on sea freight and 18% GST on air freight charges, which increases the cost of goods and makes it difficult for exporters to compete with other countries in the international market on the cost front.
Export businesses have also taken a hit, with exporters having to pay 18% GST on freight charges, which has led to a decrease in the volume of exports. This has subsequently reduced foreign exchange flow to the exchequer.
The Chamber requested the government to take steps to exempt exports and related services from paying GST, to encourage exports.
The CBIC issued circular No 31/05/2018-GST dated February 9, 2018, fixing monetary limits for adjudicating cases based on the hierarchy of officers.
The circular was issued by the central department, considering the importance of making quality assessments as cases will be assessed by officers having the required qualifications and experience. It was suggested that similar circulars be issued by the state department to fix
monetary limits for assessments by the officers.
The Chamber also stated that GST should not be levied without input tax credit benefits. Apart from the initiation of the Thoothukudi-Madurai Industrial Corridor, the Chamber requested the state government to expand the runways at the Madurai airport. The memorandum was submitted to Commercial Taxes Minister P Moorthy and Finance Minister Thangam Thennarasu.