Ministry of Finance on 19th July,2021 released a circular clarifying the applicability of Integrated Goods and Services Tax (IGST) on repair cost, insurance and freight on goods re-imported after being exported for repairs based on the recommendations of the GST Council. The clarification is provided for decision of GST Council in its 43rd Meeting
held on the 28th May, 2021.
It is clarified that re-import of goods sent abroad for repairs attracts IGST on a value equal to the repair value, insurance and freight and not on the entire value of goods imported.
