IGST on ocean freight reverse charge clarified as retrospective by SC ruling, leading to successful rectification of prior demand.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Challenge concerns taxability of ocean freight under the IGST reverse charge mechanism and rejection of a rectification application. The court found the Proper Officer erred in treating a Supreme Court decision as prospective where constitutional precedent requires judgments to operate retrospectively unless expressly prospective, and concluded the SC ruling that Notification 10/2017 is clarificatory (not altering the taxable person under reverse charge) governs earlier import transactions; therefore the impugned confirmation of IGST demand and the March 25, 2025 rejection of rectification could not be sustained and the rectification application was allowed.....