Govt may soon impose IGST on ex-factory sales; decision in September

The issue of double taxation was raised after an order by the Authority for Advance Rulings, Uttarakhand, which ruled that the importer will have to pay the IGST on CIF value and also on ocean freight

The government may soon announce that integrated goods and services tax (IGST) will be imposed on ex-factory sales which happen in one state and the buying company is located in another state. Also, the next GST Council meeting, slated for September, may take up the issue of double taxation for goods imported on the basis of cost, insurance and freight (CIF).

These issues were also raised by the industry with Finance Minister Piyush Goyal recently.

Since GST is destination-based, tax is imposed in the state where the goods are bought. But, if a buyer, say in Gujarat, decides to buy goods from