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Friday, March 29 2024
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GST impact: Cargo swells to 500 tons at Indian Airports, expats suffer

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Dubai: Life has not been rosy for thousands of Indian expats and cargo agents after the introduction of goods and service tax system on imports.

An expat, who enjoyed the benefit of sending up to 20,000-rupee (Dh1,140) worth gifts and goods tax-free to India earlier, can now send goods worth 2,000 rupees (Dh114) only. With the imposition of the new 41 per cent revised tax, 500 tonnes of goods being struck at various Indian airports for lack of clearance.

That has left expats high and dry, and most remain apprehensive about using cargo services in future.

“I had sent a gifts and goods consignment weighing 20kgs worth Dh600 and the cargo company charged me Dh220. The cargo company has assured of delivering goods this time but what about services in future?” said Rashid Ali, an expat, whose cargo hasn’t been delivered even after three weeks and says the company in future will load the GST component to make matters worse.

The new tariff is a shocker for all low-paid workers with Government airlines like Air India Express allowing only 30kg, opined Thomas Chacko, another expat, who had sent wiring and cable works for his new home through cargo services.

Pressure is mounting on the Indian government after cargo agents from the UAE and GCC region descended in New Delhi to meet ministers and officials seeking rollback in the tax structure. There are other groups like International Courier Agent Welfare Association, which are meeting various officials in the New Delhi to find a solution to this vexed issue.

With 41 per cent revised tariff, all are feeling the pinch. We have 300 tonnes at New Delhi, 100 at Mumbai and 100 at Bengaluru airports, said Dubai-based Federation of Indian Cargo Agents (Middle East) president Muhammed Sadique

There are some 28 lakh Indian expats in the UAE, where most use cargo services for shipments will now pay this 41 per cent additional tax burden.

Agents willing to bear the additional tax burden this time with cooperation from their customers are not sure of what future holds for them and are busy getting the backlog cleared.

Despite their readiness to pay new taxes this time, chances of airport authorities impose demurrage to worsen their situation further still haunts them.

Commerce minister Nirmala Sitharaman who said , if you do not want to pay GST at restaurants , ‘cook at home and eat’ may offer similar advise for expats to put the burning issue to rest.

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