High Court quashes reverse charge tax on ocean freight charges
The Central Government in 2017 had imposed service tax on a reverse charge basis on ocean freight charges incurred by an importer. This tax was payable (on a nominal basis) even if the importer did not directly pay the ocean freight charges to the shipping company/ freight forwarder. This practice was continued into the GST regime. However, a number of importers challenged the levy before the Gujarat High Court, which has now ruled in favour of the taxpayers.
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