Government Exempts 5% Integrated GST on Ocean Freight Imports from October 1, 2023

• The Indian government has exempted payments made for goods imported through ocean freight from 5% integrated GST starting from October 1, 2023.
• The Finance Ministry has made changes to the IGST Act to implement this exemption.
• Currently, importers are required to pay 5% GST under the Reverse Charge Mechanism.
• The amendments proposed are in line with the Supreme Court’s ruling in the Mohit Minerals case.
• The Supreme Court ruled that a separate levy on the Indian importer for the supply of services by the shipping line would be in violation of the GST Act.
• The Mohit Minerals case challenged the validity of the CBIC notification regarding the levy of IGST on ocean freight.
• The Supreme Court upheld the decision of the High Court in the Mohit Minerals case.

Source: a2ztaxcorp.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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