The Gujarat High Court ruled on 23.01.2020 in the Mohit Minerals case that certain GST notifications concerning import ocean freight were ultra vires. Despite a request for a stay, the court declined to halt the judgment's operation. The consensus is that RCM GST on import ocean freight is still required to be paid, though potentially 'under protest' due to ongoing litigation.
05 February 2020
ON 23.01.2020, GUJRAT HIGH COURT GIVEN DECISION REGARDING GST ON IMPORT OCEAN FREIGHT IN THE CASE OF –MOHIT MINERALS V/S UNION OF INDIA. ON 23.01.2020. HON. HIGH COURT DECLARED THAT NOTIFICATION NO.8/2017 INTEGRATED TAX ( RATE ) DT.28.06.17 & THE ENTRY NO.10 OF NOTIFICATION NO.10/2017 , INTEGRATED TAX ( RATE ) ARE BY ULTRA VIRES.
MR. NIRZAR DESAI THE LEARNED STANDING COUNSEL APPEARING FOR THE UNION OF INDIA ,MADE A REQUEST TO STAY THE OPERATION ,IMPLEMENTATION, & EXECUTION OF THE JUDGMENT. HAVING TAKEN THE VIEW THAT THE IMPUGEND NOTIFICATION & THE ENTRY NO.10 THERE IN ARE ULTRA VIRES THE IGST ACT 2017. THE HON. GUJRAT HIGH COURT DECLINE TO STAY THE OPERATION OF JUDGMENT,
HON.JUDGE- 1) J.R.PARDIWALA 2) A.G. RAO
DATE-: 23.01.2020
MY QUESTION IS RCM GST ON IMPORT OCEAN FREIGHT IS IS TO BE PAY OR NOT PAY