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

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

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.

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.

Next Story
Infrastructure Urban

India To Invest $37 Billion To Boost Petrochemical Capacity

India is set to become a major global player in the petrochemicals industry, driven by a planned capital expenditure of $37 billion (Rs 3.1 trillion) aimed at reducing import dependency and enhancing self-sufficiency, according to S&P Global Ratings.In its latest report titled “First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply”, S&P said India’s large-scale capacity expansion—mirroring China’s earlier push—will likely intensify oversupply pressures in Asia’s petrochemical markets.Currently the world’s third-largest petrochemical consumer a..

Next Story
Infrastructure Transport

Indian Railways Expands Global Exports Of Rail Equipment

Indian Railways has announced that it is rapidly emerging as a global exporter of railway equipment, including bogies, coaches, locomotives, and propulsion systems, under the government’s ‘Make in India, Make for the World’ initiative.According to an official statement, India’s railway products are now reaching over 16 international markets, reflecting the country’s growing capacity to design, develop, and deliver world-class rail solutions.Metro coaches have been exported to Australia and Canada; bogies to the United Kingdom, Saudi Arabia, France, and Australia; propulsion systems t..

Next Story
Infrastructure Transport

RailTel Awards Rs 163 Million Contract To RTNS Technology

RailTel Corporation of India Limited (RailTel), a Mini Ratna Public Sector Undertaking, has awarded a domestic work order worth Rs 163 million to RTNS Technology Private Limited.The contract, issued on 30 September 2025, involves the supply and installation of equipment and related services for one of RailTel’s key customers. The project underscores RailTel’s commitment to advancing technology and communication infrastructure through collaboration with domestic system integrators.RTNS Technology Private Limited, an ISO-certified system integrator, provides comprehensive solutions for perim..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?