Gujarat High Court directed the department to grant refund of IGST already paid by the assessee on the amount of ocean freight charges.

Following a Supreme Court verdict, the Gujarat High Court has directed the GST department to grant refund of tax paid on ocean freight within six weeks. Experts say this ruling is beneficial on two counts – first, defines a time-bound refund settlement process for GST on ocean freight anSd, second, provides clarity on sectors that are outside GST or under theinverted duty structure. In May this year, dismissing an appeal by the Centre in the matter of Mohit Minerals, the Supreme Court upheld a ruling by a division bench of the same High Court and said: “Having paid IGST (Integrated Goods & Service Tax) on the amount of freight which is included in the value of imported goods, the impugned notifications levying tax again as a supply of service, without any express sanction by the statute, are illegal and liable to be struck down.”