In view of careful interpretation and analysis of the fundamentals of Constitution, the Supreme Court verdict in the case of M/s. Mohit Minerals Pvt Ltd has clearly etched its spot as one of the most significant rulings of the recent times. Through the judgement pronounced on 19 May 2022, Honourable Apex Court has held that there would be no separate levy of IGST on transportation costs (i.e. freight) which forms a part of the customs valuation of goods in case of imports on a CIF (Cost, insurance and freight) basis.
The Supreme Court verdict confirms the judgement of Gujarat HC pronounced dated 23 January 2020.
Please find attached the newsflash that summarises our understanding of the findings of the apex Court with regards to the case only. Certain administrative aspects of the GST law and structure, which were made by the apex Court, have not been covered in the newsflash.