Notice has been issued by the Gujarat High Court to Centre Government, the Goods & Services Tax GST Council and the Central Board of Indirect Taxes & Customs (CBIC) challenging the IGST exemption granted to the import of repair and maintenance goods under the place of supply rules of GST, the rule according to which IGST is levied when the place of supply is different than that of the supplier.
Read Also: High Court Takes Action For ‘Blocked Credits’ Under GST
IGST was exempted on the import of repair and maintenance goods, whereas the tax was imposed on the job works of akin nature. Job work refers to the working on raw material or semi-finished goods to attained a finished good. So, the case clearly depicts the discrimination between the two kinds of importer.
The concerned case is about the petitioner who imports the raw material in the form of chemicals, processes it and then re-export the finished goods. Abhishek Rastogi, partner at Khaitan Co who is a counsel for petitioner, calls it a settled law that the exemption benefit taken away for an interim time-frame may invite a judicial retrospect.
