October 6: The Indian government has decided to waive the goods and service tax (GST) on the commodities Nepal and Bhutan have been supplying to the third countries via its land.

The southern neighbour has amended the provision introduced by its central government. The amendment on the provision means that the Indian government now will not levy any service charge on the transit cargos from Nepal and Bhutan.

Ravi Sainju, joint-secretary at the Ministry of Commerce (MoC), confirmed that the Indian government has waived GST for the transit cargos from Nepal and Bhutan. Despite the announcement, the Nepalese traders should wait further to enjoy GST waiver. Sainju said that the Indian government waived GST after continuous request from the Nepalese side.

“The Indian government has waived GST effective from September 29,” Sainju said. The Indian side had started to levy GST from January 1.

Nepal has been importing more than 70,000 containers of commodities annually from different countries via India.  A source at the MoC said that Nepal has been paying a total of Rs 150,000 per container while importing goods from third countries via India. It is estimated that Nepal will save more than Rs 1 billion annually after GST waiver from India.