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Nepal seeks GST waiver on trade through India

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Nepal’s Ministry of Commerce has written to the Indian government urging for a waiver of GST (Goods and Services Tax) on Nepal-bound goods.

As per reports in the Nepalese media, this follows a slowdown in exports and imports of goods to and from third countries via India due to confusion created by implementation of GST. The pace of imports and exports had slowed down few days before implementation of the new tax regime, and has not picked up since, it was pointed out. This has been attributed to Indian Customs offices still upgrading their IT systems, delaying movement of goods.

As Nepal relies mostly on Kolkata Port to import and export third-country goods, delays at Indian Customs affect the country’s external trade, reports highlighted.

Freight forwarders in Nepal have also said that cargo handling costs have gone up since the implementation of GST, pointing out that the authority at Kolkata Port earlier used to impose 15 per cent logistics service charge on goods imported from third countries, but post-GST the charge has been increased to 18 per cent.

Reports added that Kolkata Port has also started imposing 5 per cent service charge on Nepali products exported to third countries. Previously, no service charge used to be levied on Nepal’s exports.[/vc_column_text][/vc_column][/vc_row]

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