New Delhi - The Government has exempted payments made for goods imported through ocean freight from 5 per cent integrated GST with effect from October 1.

The Finance Ministry has notified changes to the IGST Act with regard to payment of integrated GST on 'ocean freight' on imported goods with effect from October 1.

Currently, importers are required to pay 5 per cent GST under the Reverse Charge Mechanism.

KPMG Indirect Tax Head & Partner Abhishek Jain said the amendments proposed are aligned with the apex court's ruling in the case of Mohit Minerals and help explicitly mention the government's alignment to the position.

"While this has been issued prospectively, the industry has been seeking and successfully claiming refund of taxes already paid for the past period, where credit has not been availed," Jain added.