Applicability of IGST \/ GST on goods transferred \/ sold while being deposited in a warehouse
PUBLIC NOTICE NO. 157\/2017 Dated:- 18-12-2017 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS, NS-III
\nMUMBAI CUSTOMS ZONE-II JAWAHARLAL NEHRU CUSTOM HOUSE,
\nNHAVA SHEVA, TAL:- URAN, DIST : RAIGAD. PIN – 400 707.
\nF. No. S\/22-Gen-402\/2017-18\/AM(I)\/JNCH. Pt. I
\nDated: 18.12.2017
\nPUBLIC NOTICE NO. 157\/2017
\nSubject: Applicability of IGST \/ GST on goods transferred \/ sold while being deposited in a warehouse. -reg.
\nAttention of the Importers, Exporters, General Trade, Port Terminal Operator, Shipping Lines \/ Shipping Agents, CFSs coming under the jurisdiction of JNCH, Nhava Sheva and all other stakeholders is invited to Circular No. 46\/2017-Customs, dated 24th November 2017 [F. No: 473\/10\/2017-LC] on the above subject issued consequent to various References received from the trade regarding levy of IGST\/GST on sales of goods deposited in a customs bonded warehouse.
\n2. Chapte<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ction (1) of Section 15 of the Customs Act provides that the rate of duty or tariff valuation for an ex-bond Bill of Entry shall be the date on which it is filed. There is no provision to vary the assessable value of the goods at the ex-bond stage unless they are such goods on which tariff valuation applies. Therefore, duties of customs (BCD + IGST) shall be paid on the imported goods at the stage of ex-bonding on the value determined under section 14 of the Customs Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n toms bonded warehouse and are transferred by the importer to another person, the transaction will be subject to payment of IGST at the value determined as per section 20 of the IGST Act read with section 15 of the CGST Act, 2017 and the rules made thereunder and the tax liability shall be reckoned as per section 9 of the CGST Act, 2017. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Applicability of IGST \/ GST on goods transferred \/ sold while being deposited in a warehousePUBLIC NOTICE NO. 157\/2017 Dated:- 18-12-2017 Trade NoticeCustomsOFFICE OF THE COMMISSIONER OF CUSTOMS, NS-III MUMBAI CUSTOMS ZONE-II JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA, TAL:- URAN, DIST : RAIGAD. PIN – 400 707. F. No. S\/22-Gen-402\/2017-18\/AM(I)\/JNCH. Pt. I Dated: 18.12.2017 PUBLIC … Continue reading “Applicability of IGST \/ GST on goods transferred \/ sold while being deposited in a warehouse”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-17133","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/17133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17133"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/17133\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n4. However, the transaction of sale \/ transfer etc. of the warehoused goods between the importer and any other person may be at a price higher than the assessable value of such goods. Such a transaction squarely falls within the definition of “supply” as per section 7 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as, “CGST Act”) and shall be taxable in terms of section 9 of the CGST Act read with section 20 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as, “IGST<\/p>\n
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\n 5.2 However, it may be noted that so long as such goods remain deposited in the warehouse the customs duty to be collected shall remain deferred. Further, it is only when such goods are ex-bonded under section 68, shall the deferred duty be collected, at the value as had been determined under section 14 of the Customs Act, 1962 in addition to IGST leviable, as indicated at Para 5.1 above. An illustrative chart on in bond sales and clearance thereof is attached as Annexure.
\n6. In case of any difficulty, the specific issue may be brought to the notice of Deputy\/Assistant Commissioner in charge of Bond Section \/ Appraising main (Import),NS-III (email ad<\/p>\n
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