Merchandise Exporters of goods must pay 18% GST on shipping costs, according to the government.

Merchandise exporters will have to pay an 18% GST on Shipping cost (means 18% gst on goods transportation services), which the industry says will cause cash flow problems at a time when exports are declining.

This is in response to a GST Council recommendation that the location of the service recipient should be used to establish the place of supply of transportation of goods rather than the final destination of the products.

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