Govt team to visit India for GST talks

- Post Report, Kathmandu

Jul 10, 2017-Showing concern on the possible impact on Goods and Services Tax (GST) imposed by the Indian government, a high level government team is holding talks with the Indian government officials on Tuesday. The delegation is set to discuss GST in relation to the bilateral Trade and Transit Treaty between the two countries.

According to Commerce Ministry, a team led by Ravi Shankar Sainju, joint-secretary of the ministry, will be visiting New Delhi on Tuesday to discuss on the matter. The 15-20 member team will also include officials from Ministry of Foreign Affairs and Finance Ministry.

Sainju said Nepal would be drawing attention of Indian government over GST implementation in relation to the bilateral Trade and Transit Treaty. “Although it is yet to see the actual impact of GST recently imposed by India, the government has targeted to address the problems that the traders are reported to have been facing following the GST implementation,” Sainju added.

“Goods intended for import into or export from the territories of either Contracting Party from or to a third country shall be accorded freedom of transit through the territories of the other party. No distinction shall be made which is based on the flag of vessels, the place of origin, departure, entry and exit destination or ownership of goods,” reads the bilateral treaty.

The government expressed its concern following the complaints raised by the traders and freight forwarders. Despite the provision in the treaty, the traders and freight forwarders have been complaining to the authority over a slowdown in export and import of goods to and from third countries via India last week after the Indian government enforced GST.

According to the traders and freight forwarders, the authority at the Kolkata Port earlier used to impose 15 percent logistic service charge on goods imported from third countries. With GST coming into effect, that charge has been raised to 18 percent.

“Although the GST should not affect Nepal’s trade, however with the confusion to the officials at implementation level, Nepali traders could have been facing problem,” said Sainju adding that the ministry will finalise the main issues to be discussed on Monday.

Published: 10-07-2017 08:24

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