DGGI granted Rs.3,000 crore GST Exemption to Foreign Shipping Companies for FY18:

DGGI granted Rs.3,000 crore GST Exemption to Foreign Shipping Companies for FY18 In a significant relief for foreign shipping companies operating in India, the Directorate General of Goods and Services Tax Intelligence (DGGI) has revoked a tax demand of almost Rs.3,000 crore against 18 international shipping companies operating in India for the financial year 2017-18, as per a report. The tax demand was lifted when shipping companies persuaded authorities that no services were imported in 2017-18, according to the report, citing sources. The DGGI's recent decision provides relief for foreign shipping lines such as Maersk, Orient Overseas Container Line Ltd, and Hapag-Lloyd Mediterranean Shipping, who had received notices for failing to pay goods and services tax (GST) on imported services beginning in July 2017. However, the tax demand for later years remains in effect. The DGGI launched an inquiry in October 2023 into charges that Indian branches of multinational shipping companies and airlines had failed to pay GST via the reverse charge mechanism for services such as aircraft rental, maintenance, and crew salaries paid abroad. The agency also asked for thorough explanations from these corporations while upping tax demands for the period of July 1, 2017 to March 31, 2024. In February of this year, the DGGI sent summonses to all international shipping lines operating in the country. Following the summons from the DGGI offices in Ahmedabad and Mumbai, the companies contacted the finance ministry together and provided a full analysis of the imported services.