- The shipping industry in India is under investigation by GST authorities for payment of past dues of integrated GST on ocean freight.
- Some ocean liners are also being investigated for booking operational expenses to head offices located abroad instead of local branch offices.
- The overall tax liability of the sector is estimated to be around Rs 2-2.5 lakh crore.
- The government has exempted ocean freight from integrated GST of 5% from October 1, 2023.
- Previous cases are still under investigation by the Directorate General of GST Intelligence.
- Foreign shipping liners operating under the branch model in India are also under investigation for alleged tax evasion on import of services.
- Shipping liners are in talks with the finance ministry for potential relief, but no decision has been made yet.
Source: businesstoday.in
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.
