21.10.2023: Notification issued for Conditional IGST exemption for Foreign Going Vessel converted for a coastal run

The CBIC issued Notification No. 60/2023-Customs dated 19.10.2023, to give effect to the recommendation taken in 52nd GST Council Meeting held on 7th October, 2023, in order to provide conditional GST exemption to foreign flag foreign going vessel when it converts to coastal run subject to its reconversion to foreign going vessel in six months.

To effect this a new Entry No. 551A has been inserted to the Notification No. 50/2017-Customs dated June 30, 2017, which reads as under:

“Foreign Going Vessel converted for a coastal run:

Provided that such vessel re-converts to a foreign going vessel within six months from the date of such conversion.

Explanation. – For the purpose of this entry,

(i) “Foreign going vessel” shall have the same meaning as assigned to it under clause (21) of Section 2 of the Customs Act 1962.

(ii) “Conversion to coastal Vessel” shall include the vessel granted necessary license under the Merchant Shipping Act,1958 “

The Notification shall be effective w.e.f. 20.10.2023

The Notification can be accessed at https://taxo.online/wp-content/uploads/2023/10/cst-60-2023.pdf

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