The implementation of Goods and Services Tax (GST) has impacted a wide range of sectors including the shipping industry. Within the sector, there are some areas wherein the GST levy is tilted in favour of international players instead of the domestic ones. Also, there are certain pain points in the sector that have been highlighted to the government, although an outcome is long awaited.
The areas that the sector is looking for some government attention includes discrimination in taxability of outbound freight in the hands of Indian shipping companies versus foreign shipping companies, import of vessels face IGST of 5%, place of supply and Input Tax Credit (ITC) in case of bunker fuel and other goods, no refund of ITC for GST on outbound freight services provided to Indian customers, sale of vessel located outside India, and possible classication issue for bareboat charter of vessels, among others.
Read more at: https://www.dnaindia.com/business/report-shipping-companies-seek-gst-parity-2715740