Date: 29/09/2023
Ocean freight import payment exempted from 5 pc IGST
THE government has exempted payments made for goods imported through ocean freight from the 5 per cent integrated GST with effect from October 1, 2023. The Finance Minis-try has notified changes to the IGST Act about payment Ocean freight import payment exempted from 5 pc IGSTof integrated GST on ocean freight on imported goods. Cur-rently, importers are required to pay 5 per cent GST under the Reverse Charge Mechanism. The amendments are aligned with the apex court’s ruling in the case of Mohit Minerals and help explicitly mention the gov-ernment’s alignment with the position. The Court had held that since the Indian importer is liable to pay IGST on the composite sup-ply, comprising supply of goods and supply of services of trans-portation, insurance, etc. in a CIF contract, a separate levy on the importer for the supply of services by the shipping line would violate the GST Act, as per a report.
Source: Exim News Service: NEW DELHI, Sept. 28
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