Indian Government Grants GST Exemption to Foreign Shipping Firms for FY18

In a move aimed at supporting international trade, the Indian government has decided to provide a significant Goods and Services Tax (GST) exemption to foreign shipping companies. This policy action will account for around Rs 3,000 crore in GST exemptions for the fiscal year 2018 and is expected to have considerable implications for the economy and the international shipping industry. This exemption comes as part of the government's initiative to boost economic growth and facilitate the ease of doing business within the maritime sector.

Economic Impact of GST Exemption

The exemption of Rs 3,000 crore can play a vital role in enhancing the competitiveness of foreign shipping companies operating in Indian waters. By lifting the GST burden, these companies are more likely to increase their operations, thereby, increasing the overall volume of maritime trade. The policy is also projected to align India more closely with international tax practices in the shipping industry, potentially attracting greater foreign investment and participation.

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investment, shipping, economy