The Government of India has decided not to file a review petition against the Supreme Court's judgment in the case of "M/s United Liner Agencies of India vs. Commissioner of GST and Central Excise" regarding the levy of Integrated Goods and Services Tax (IGST) on ocean freight for imports. The Supreme Court had ruled that the levy of IGST on ocean freight was not justified for the period prior to the notification dated August 8, 2017.The recent decision of the Supreme Court regarding the levy of Integrated Goods and Services Tax (IGST) on ocean freight has been a matter of debate and discussion.
This decision by the government means that taxpayers will be entitled to claim refunds of IGST paid on ocean freight for imports during the period prior to August 8, 2017. The government has also issued a circular to this effect, providing clarity on the modalities for claiming such refunds.
It is expected that this decision by the government will provide relief to importers who were facing difficulties in claiming refunds of IGST paid on ocean freight for imports.
A: Integrated Goods and Services Tax (IGST) on Ocean Freight is a tax levied on the transportation of goods via ocean or sea. It is applicable to both import and export of goods and is charged by the shipping line or carrier on the freight charges.
A: In July 2020, the Supreme Court had held that IGST is not leviable on ocean freight paid by an Indian resident to a foreign shipping line or a foreign entity. The Court held that the levy of IGST on ocean freight was contrary to the provisions of the IGST Act, 2017.
A: As of my knowledge cut-off date of September 2021, there was no news or announcement regarding the government's decision to file a review petition against the Supreme Court judgment. However, it is always possible for the government or any other concerned party to file a review petition in the future.
A: In a recent ruling, the Supreme Court upheld the levy of IGST on ocean freight. The court held that the levy of IGST on the ocean freight component of imported goods is valid and constitutional.
A: The issue of levy of IGST on ocean freight was a matter of dispute between the taxpayers and the government. The taxpayers had argued that IGST should not be levied on ocean freight as it was a part of the composite supply of transportation services. However, the government had contended that the levy of IGST on ocean freight was valid and in accordance with the law.
A: The government has welcomed the Supreme Court's decision and has stated that it will not file a review petition against the judgment. The government has also said that the decision will have a positive impact on revenue collection and will promote the 'Make in India' initiative.
A: The Supreme Court's decision will have a significant impact on importers and taxpayers as they will now have to pay IGST on ocean freight for the imported goods. This will increase the cost of imported goods and may have an impact on the pricing of the final products.
A: Yes, taxpayers can claim ITC for the IGST paid on ocean freight as it is an eligible input tax under the GST regime. However, the ITC can only be claimed if the imported goods are used for business purposes.
A: No, the Supreme Court's decision is only related to the levy of IGST on ocean freight for imports. The disputes regarding the levy of GST on ocean freight for exports are still ongoing and have not been addressed by the Supreme Court in this judgment.
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