General Studies · Statement and Arguments

Statement: Should the demand of exporters, who are facing liquidity challenges, for extending the Goods and Services Tax (GST) exemption on export freight be accepted? Arguments: I. Yes, because GST on export freight is revenue-neutral since exporters can claim a refund later; extending the exemption directly improves upfront liquidity and reduces working capital blockage. II. Yes, because GST on export freight is levied by the Central Government, which possesses discretionary powers to grant exemptions.