High court issues notice to Gujarat Government for Over levy of IGST on Ocean Freight

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HC issues notice to Revenue in writ petition challenging levy of IGST on ocean freight payable on transportation of goods by a vessel; The petitioner’s challenge has principally 3 elements: (i) since IGST has already been paid on entire value of imports inclusive of ocean freight, it cannot be asked to pay tax on ocean freight all over again under a different notification, (ii) in case of CIF contracts, since both service provider and recipient are outside Indian territory, no tax thereon can be collected even under reverse charge mechanism (RCM), and (iii) in case of high sea sales (HSS), since petitioner’s seller receives services from exporter/transporter, burden cannot be cast on petitioner as an importer who is not the service recipient;

Consequently, the petitioner’s submission is that Notification No. 8/2017-Integrated Tax (Rate) and Entry 10 of Notification No. 10/2017-Integrated Tax (rate) are ultra vires the IGST Act, 2017 and in exercise of excessive delegation of powers of subordinate legislation; HC lists matter on March 9, 2018 : Gujarat HC

Read more at:  http://www.a2ztaxcorp.com/wp-content/uploads/2018/02/Mohit-Minerals-pvt-Ltd.pdf