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Supreme Court strikes down GST reverse charge on ocean freight in CIF imports

The Supreme Court of India ruled (Union of India vs Mohit Minerals Pvt. Ltd.) on 19 May 2022 that an Indian importer is not subject to reverse charge Integrated Goods and Services Tax (IGST) on payments for ocean freight made by a foreign seller to a foreign shipping line, since the importer already is required to pay IGST as a component customs duty, on the “Cost-Insurance-Freight” (CIF) value of the imported goods. The court upheld a 2020 decision of the Gujarat High Court.

Source BDO

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