In a significant relief for foreign shipping companies operating in India, the Directorate General of Goods and Services Tax Intelligence (DGGI) has rescinded a tax demand of approximately Rs 3,000 crore for the financial year 2017-18 against 18 foreign firms, according to a report by the Economic Times.
The tax demand was withdrawn after the shipping companies collectively assured authorities that no services had been imported in 2017-18, the report said, citing sources.
Latest move by DGGI
The latest move by the DGGI provides relief to foreign shipping lines such as Maersk, Orient Overseas Container Line Ltd, and Hapag-Lloyd Mediterranean Shipping, which had been issued notices for the non-payment of goods and services tax (GST) on imported services starting from July 2017.
The agency also requested detailed explanations from these companies while raising tax demands for the period from July 1, 2017, to March 2024. In February of this year, the DGGI issued summonses to all foreign shipping lines operating in the country.
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Source: Business standard
