The government has granted foreign shipping companies a GST exemption of Rs 3,000 crore for the financial year 2017-18. This exemption has been given to these companies on the basis of a notification issued by the Central Board of Indirect Taxes and Customs (CBIC).
According to the notification, the GST exemption has been granted to foreign shipping companies for the services provided by them to their clients in India. This exemption is applicable to the services provided by these companies during the period from July 1, 2017, to March 31, 2018.
The CBIC has clarified that the exemption has been granted to foreign shipping companies as their services are not liable to GST in India. The notification further states that the exemption has been granted as per the provisions of the GST Act and the rules made thereunder.
This exemption is seen as a relief to foreign shipping companies who were facing difficulties in claiming GST refunds. The government’s move is expected to boost the shipping industry and increase the competitiveness of Indian ports.
The GST exemption is a significant step taken by the government to promote the shipping industry and increase the ease of doing business in India. The move is also expected to attract more foreign shipping companies to operate in India.