In Brief
An Indian importer challenged GST notifications that levied Integrated GST (IGST) on ocean freight in Cost-Insurance-Freight (CIF) import transactions on a reverse charge basis. The Supreme Court held that while the notifications were validly issued under the IGST Act as the importer could be deemed a service recipient via a statutory deeming fiction, the actual levy violated the principle of composite supply. Since CIF imports already attract IGST on the aggregate value (including freight), imposing a separate tax on the service component breached the GST scheme. The Court also held that GST Council recommendations are non-binding and merely persuasive, not overriding Parliament's legislative sovereignty. The appeal was dismissed.
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