GST ON OCEAN FREIGHT IS UNCONSTITUTIONAL

Latest Update  23.01.20 - MOHIT MINERAL CASE GUJ HIGH COURT DECLARED GST ON OCEAN FREIGHT IS UNCONSTITUTIONAL 

Refer old posts as given below :

IMPORTANT UPDATE ON 01.07.2019 - No Stay on IGST Levy on Ocean Freights: Gujarat HC Order grants specific Relief to Petitioner Only

Read more at: https://www.taxscan.in/stay-igst-levy-ocean-freights-gujarat-hc/35767/

Good News to Importers – Gujarat High Court stays IGST levy under Reverse Charge on Import Ocean Freight MSG DT 20.05.19

Right from Service Tax era, there is a liability of tax in the hands of importers under reverse charge on Import ocean freight. For example, if an importer enters into CIF terms with shipper, the ocean freight is paid at origin itself but importer has to pay 5% IGST on prepaid Ocean freight under Reverse Charge mechanism. 

At the same time, on CIF assessable value, which includes Ocean freight, again he has to pay IGST at the time of Customs clearance. Hence obviously an importer suffers tax twice on Ocean Freight.

M/S.MOHIT MINERALS PVT LTD has challenged IGST on import ocean freight under RCM before Gujarat High Court and a similar petition filed by M/s.Ghanshyamlal and Company.

Hon’ble Gujarat HC has granted stay on Import Ocean Freight IGST and issued notice to Tax Authorities & next hearing will be on June 19^th. 

   

Looks it is a good development and hope it should come as a relief to importers at large.