IGST on ocean freight is not permissible under law: Gujarat High Court

The Gujarat High Court has declared imposition of integrated goods and services tax (IGST) on ocean freight as violative of the Constitution. Ocean freight is the cost incurred through an agreement between two foreign parties to bring goods to India via ocean. 

Allowing petitions against the tax, the court said the levy and collection of tax on ocean freight was not permissible under the law. 

“The taxability dispute on ocean freight has been finally decided by the court to hold that taxing the ocean freight is ultra vires and leads to double taxation,” said Abhishek Rastogi, partner at Khaitan & Co. Petitions