A new road for India’s fiscal federalism

News Today 25.06.2022

On May 19, in Union of India vs Mohit Minerals, the Supreme Court of India delivered a ruling which is likely to have an impact far wider than what the Centre might have imagined when it brought the case up on appeal. At stake was the validity of a levy imposed on importers, of Integrated Goods and Services Tax (IGST) on ocean freight paid by foreign sellers to foreign shipping lines. The Gujarat High Court had declared the tax illegal. The Supreme Court affirmed the ruling through Justice D.Y. Chandrachud’s judgment and held that the levy constituted double taxation — that is, that the importer, which was already paying tax on the “composite” supply of goods, could not be asked to pay an additional tax on a perceived “service” that it may have received. (Read More)

 

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