GST: Rough weather ahead for shipping

Tax levy to erode global competitiveness, discourage fresh investments

The Goods and Services Tax (GST) rate structure is expected to have an adverse impact on India’s shipping industry. Industry insiders say the crucial tax reform may work against domestic shipping companies as tax imposition at the time of asset creation and discrimination between domestic and foreign shipping firms would discourage fresh investments and erode global competitiveness.

“The tax structure defeats the entire argument of equivalence of pre-and post-GST era and would add to the tax burden of Indian shipping companies,” Bharat Sheth, deputy chairman and managing director at Great Eastern Shipping, told Business Standard. While the industry has raised