- DGGI Ahmedabad has alleged that shipping liners may have evaded taxes amounting to ₹1.2 to ₹1.5 lakh crore, according to sources.
- Shipping liners have reportedly made detailed representations to various authorities, including the Finance Ministry, Central Board of Indirect Taxes and Customs (CBIC), and DGGI, seeking a resolution to the matter.
- The allegations suggest that shipping liners have operated through branch offices in India and may have evaded taxes on imported services from their head offices located abroad.
- The shipping liners are accused of transferring their operational costs, such as lease rentals, fuel charges, and crew charges, to their head offices abroad without properly accounting for these expenses in their Indian branch offices.
- Under India’s GST law, transactions between a company’s establishments in India and abroad are considered supplies, even if provided without consideration. Import of services is subject to GST, and the investigation aims to determine the tax liability in such cases.