Taxpayers who have paid GST on 'Ocean Freight' on imported goods are now entitled to claim refunds, as per the Supreme Court verdict, provided that they have not claimed the input tax credit. Read about the Advance rule of GST filing

The Central Goods and Service Tax Act: “Giving its ruling in the Mohit Minerals case, the Supreme Court held that since the Indian importer is liable to pay IGST on the 'composite supply', comprising of supply of goods and supply of services of transportation, insurance, etc. in a CIF (Cost Insurance Freight) contract, a separate levy on the Indian importer for the ‘supply of services' by the shipping line would be in violation of ...”

In this particular case, the company had challenged the validity of the Central Board of Indirect Taxes & Customs (CBIC) notification regarding levy of Integrated GST on ocean freight in the Honorable Gujarat High Court. The Honorable Apex Court upheld the decision of the Gujarat High Court which had favored the company.

Vivek Jalan, the partner and founder of Tax Connect Advisory Services, said “This is a big relief for importers and GST taxpayers.”

The taxpayers who had paid the GST may  seek a refund  now.

 The Partner  at N A Shah Associates, Naresh Sheth said "Such levy, in substance, was a tax on transactions between two foreign parties taking place outside India which apparently is beyond the territorial jurisdiction of the Indian Government."

The latest Supreme Court’s judgment gave relief to the taxpayers, as they are now entitled to claim their GST refund on Ocean freight.