Insights
- India has decided to exempt goods imported using ocean freight from paying 5 per cent integrated goods and services tax (IGST) from October 1.
- Importers pay 5 per cent GST under the reverse charge mechanism.
- The Supreme Court in May 2022 had held that a separate levy on the importer for the supply of services by a shipping line would be in violation of the GST Act.
India has decided to exempt goods imported using ocean freight from paying 5 per cent integrated goods and services tax (IGST) beginning October 1, the finance ministry said in a notification.
Importers now pay 5 per cent GST under the reverse charge mechanism.
India has decided to exempt goods imported using ocean freight from paying 5 per cent integrated goods and services tax (IGST) from October 1.
Importers pay 5 per cent GST under the reverse charge mechanism.
The Supreme Court in May 2022 had held that a separate levy on the importer for the supply of services by a shipping line would be in violation of the GST Act.
The Supreme Court in May last year had held that as the Indian importer is liable to pay IGST on the ‘composite supply’, comprising of supply of goods and supply of services of transportation, insurance, etc in a cost insurance freight contract, a separate levy on the importer for the supply of services by a shipping line would be in violation of the GST Act.
Mohit Minerals had challenged the validity of a notification by the Central Board of Excise and Customs regarding the levy of IGST on ocean freight in the Gujarat High Court. The Supreme Court upheld the decision of the High Court.
Fibre2Fashion News Desk (DS)
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