Key Points
The Directorate General of Goods and Services Tax Intelligence (DGGI) has dropped a tax demand of about 3,000 crore for 2017-18 against 18 foreign shipping companies operating in the country, people familiar with the matter said...
The move brings cheer to foreign shipping lines, such as Maersk, Orient Overseas Container Line Ltd and Hapag Lloyd Mediterranean Shipping, who were facing notices for non-payment of goods and services tax (GST) on import of services from July 2017 onwards...
The DGGI had in October 2023 started investigation into allegations that the branch offices of foreign shipping companies and foreign airlines in India had not paid GST under the reverse charge mechanism for services such as rental, maintenance of aircraft and salary paid of crew abroad...
The fitment committee of the GST Council will decide on the exemption for subsequent years and also whether the import of services by such companies was taxable..
