The decision comes after the levy of integrated GST was struck by on the cargo of the sea Supreme court In a case related to Mohit Minerals.
Several importers had filed refund claims following the Supreme Court order, but their claims are still stuck. “Directed that if any IGST Allowing the plea of Louis Dreyfus Company India Pvt Ltd Vs Union of India, Justice NV Anjaria observed that the amount collected would be refunded within six weeks along with the statutory rate of interest.
The Finance Ministry has sought a legal opinion on the Supreme Court’s decision and the legal review is still on. Officials said the tax authorities can start the refund process only after the review is complete.
A senior official told ET, “We are yet to receive any instructions. We expect clarity on or before the next meeting of the GST Council. Since the decision to levy IGST was taken by the GST Council, the Center wants to discuss the legal opinion on it and its implementation in the Council.
Experts say that the Gujarat High Court has given relief to importers facing delay in their refunds. This will be beneficial for those sectors which are outside the purview of the GST regime or are exempted under GST or are facing inverted duty structure.
“This decision is likely to provide relief to those sectors where the payment of GST is either a cost or accrues due to inverted duty structure such as liquor, electricity, petroleum, fertilisers, textiles, etc.” Saurabh Agarwal, tax partnerEY India said.
The Supreme Court had in May held that re-taxing is illegal if IGST is paid on freight, which is included in the value of imported goods. “Notifications imposing a re-tax as supply of service, after payment of IGST (Integrated Goods and Services Tax) on the amount of freight included in the value of imported goods, without any explicit sanction, is illegal and liable to demolition.” for,” the Supreme Court said.