India - Goods & Service Tax
6 July 2017
Members trading to ports in India will be aware of the service tax on freight as outlined in the Club’s previous news alert (click here). Harsh Pratap of HP Law firm, Mumbai, advises that the service tax was repealed on 1 July 2017 and replaced with a more comprehensive Goods & Service Tax (GST) that came into force on the same day. The new GST replaces a number of indirect taxes including excise and customs duties, and other taxes and surcharges relating to the supply of goods and services.
There are 4 different rates of GST and the lowest 5% rate applies to the transport of goods on-board a vessel, which should be paid by the recipient of the goods/importer who can apply for tax credits. The good news is that the new GST does not apply directly to non-Indian domiciled shipping companies.
Further details can be found in HP Law’s note which can be accessed by clicking here.