DGGI drops Rs.30 Bn tax demand on foreign shipping firms

29 Aug 2024 CW Team

The Directorate General of GST Intelligence (DGGI) has dropped a ?30 billion tax demand against 18 foreign shipping companies for the financial year 2018. This decision comes after the authorities determined that the companies had followed the regulations set under Indian tax laws, rendering the demand unnecessary.

Initially, DGGI had raised concerns that these foreign shipping firms failed to comply with tax requirements under the Goods and Services Tax (GST) for services rendered in India. However, after a detailed investigation and consultations with the concerned firms, DGGI decided to withdraw the tax demand.

Foreign shipping firms had argued that they were already paying taxes in their home countries under international tax treaties, which allow them to avoid double taxation. These companies were providing critical shipping and transport services to Indian exporters and importers, essential for facilitating global trade.

The cancellation of the demand offers significant relief to the shipping companies, especially given the complexities of tax compliance across international jurisdictions. It also reflects India?s efforts to maintain a business-friendly environment while ensuring clarity on cross-border taxation rules.

Experts believe that this move will ease concerns in the shipping industry and boost foreign players' confidence in conducting business in India. The decision by DGGI is seen as a step toward smoother operations for international shipping lines working within Indian waters.

Infrastructure Urban

30 Jul 2026

Centre Clears Power Distribution Upgrade for Uttar Pradesh

The Central Government has approved power distribution projects worth Rs 407.39 billion for Uttar Pradesh under the Revamped Distribution Sector Scheme (RDSS). The investment will be used to modernise the state's electricity distribution infrastructure and strengthen network capacity across urban and rural areas. The package targets one of the country's largest distribution networks as the state experiences rapid urbanisation and rising electricity consumption. Planned interventions include the strengthening of distribution lines, modernisation of substations, replacement of ageing electrical ..

India Data Centres To Consume 191 TWh By 2040 Driving Renewables

A Wood Mackenzie report says India's operational data centre capacity is projected to increase more than fivefold to 12 gigawatt (GW) by 2030 from 2.2 GW in 2025 as artificial intelligence (AI) and cloud computing drive demand. It projects electricity consumption to rise from 10 terawatt-hour (TWh) in 2025 to 191 TWh by 2040. The study forecasts a compound annual growth rate of around 40 per cent and notes AI-dedicated capacity will surge nearly 24-fold from 275 megawatt (MW) in 2025 to 6,546 MW by 2030. The report places India's digital economy at Rs 32 trillion (tn) in 2025 and says it contr..

Hydrogen Train Completes 1,200 Kilometres Of Trials

India's first hydrogen train was flagged off between Jind and Sonipat on July 17 and has travelled over 1,200 kilometres in trials, saving diesel consumption of more than 3,200 litres, a Railway Ministry press release said. The deployment marks the introduction of a zero-emission fuel cell train into route testing and represents a milestone in domestic rail innovation. The train generates electricity onboard through a chemical reaction between hydrogen and oxygen, producing electricity to propel the vehicle while emitting only water vapour as a by-product. There is no smoke and no tailpipe car..