Union of India v. Mohit Minerals Pvt. Ltd. explained in simple, practical Finin2min style.
Authority: Supreme Court of India
Decision date: 19 May 2022
Core issue: IGST on ocean freight in CIF imports; GST Council recommendation status
| Field | Detail |
|---|---|
| Case | Union of India v. Mohit Minerals Pvt. Ltd. |
| Authority | Supreme Court of India |
| Timeline marker | 19 May 2022 |
| Subject | IGST on ocean freight in CIF imports; GST Council recommendation status |
Importer could not be made liable again for ocean freight component in CIF contracts; GST Council recommendations have persuasive value in cooperative federal framework.
| Function | Action point |
|---|---|
| CFO / Controller | Map the case to accounting, tax provisioning, disclosures and board reporting. |
| Tax / Legal | Check whether facts match before applying the ratio; preserve source documents and legal notes. |
| Audit / Compliance | Add the case to the risk-control matrix and verify management representation. |
A finance team applies the headline of the judgment without comparing facts. The safer approach is to document: exact facts, section/regulation, forum hierarchy, whether any later amendment overrides it, and whether the organisation’s facts are materially similar.
Importers, logistics and tax teams should not apply RCM mechanically where valuation already captures freight, and must examine charging section, delegated notifications and constitutional scheme together.