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Supreme Court’s observation in Ocean Freight ruling could change landscape of GST framework: Experts

Supreme Court’s observation in Ocean Freight ruling could change landscape of GST framework: Experts

The Supreme Court’s ruling in the case of ocean freight that is set to give relief to several Indian companies and importers could also change the way the Goods and Services Tax (GST) framework operates in the country, say legal experts.

The Supreme Court on Thursday, ruling has held that GST on ocean freight paid in case of import of goods is unconstitutional. Also, the Indian importers who had paid such tax will be eligible to refund.

Further, those importers who had not paid the tax on import of services will now not be required to pay tax because of this Supreme Court ruling.

The court also said that recommendations by the GST council are not binding on either the union or the state and it has persuasive value.

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