Reverse charge liability on import freight may be limited to CIF contracts, affecting tax on FOB imports.
The article addresses contested reverse charge liability on freight for imported goods under GST, noting the Supreme Court limited its analysis to CIF contracts while observing importers did not dispute liability on FOB imports. Subsequent High Court decisions have interpreted the Mohit Minerals line to negate reverse charge on FOB imports after declaring the notification entry ultra vires, creating legal uncertainty. The author anticipates appeals and advises paying tax, availing input tax credit, and filing refunds to protect taxpayer rights pending definitive adjudication. (AI Summary)