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19 May 2026 / India

Changes to Integrated Goods and Services Tax Act

The Government of India has formally deleted Section 13(8)(b) of the Integrated Goods and Services Tax (IGST), with effect from April 1, 2026, and services rendered by Indian shipping/steamer agents to foreign principals now qualify as “export of services” and are treated as Zero Rated Supplies under Section 16 of the IGST Act.

For Proforma Disbursement Account (PDA) advances received on or after April 1, and vessels arrived and sailed on/after April 1, no GST will be levied on agency fees and services. Payments for these services must continue to be made in convertible foreign exchange, as is the current practice.

Previously, the “Place of Supply” for services of shipping/steamer agents was considered to be the location of the agent in India, even when services were provided to foreign principals and payment was received in foreign exchange.

This amendment only impacts services provided directly by agents to foreign principals and does not alter GST applicability on services procured from other Indian suppliers.

GST continues to be applicable on services procured from third-party suppliers in India, such as Port Services, Marine Aids to Navigation (Indian Lighthouse Dues), Survey Fees, Supplies, etc.

For further details, as well as information about operations in India, contact GAC at [email protected]

If quoting any content from Hot Port News, please cite GAC Hot Port News as the source.

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