Reverse charge mechanism: CBIC not to seek review of SC verdict quashing IGST levy on ocean freight
The Central Board of Indirect Taxes & Customs (CBIC) will not file a review petition against a ruling by the Supreme Court in favour of Mohit Minerals, quashing an Integrated Goods & Services Tax (IGST) levy on ocean freight under RCM (Reverse Charge Mechanism). Experts say the legal battle is closed for now, unless the government amends the law. The legal cell of the board has communicated to the GST Commissioner of Mumbai Central that it would not file a review petition against the May 19 ruling. The ruling has become famous for a court observation which states that recommendations of the GST Council are not binding on the government, which has triggered strong political debates.
