The Central Board of Indirect Taxes and Customs (CBIC) has asked its field offices to levy GST on goods in customs warehouse only at the time of final clearance.
The move is aimed at ensuring ease of doing business for importers.
In a circular to principal chief commissioners and chief commissioners, the GST policy wing of the CBIC said, "transfer/sale of goods while being deposited in a customs bonded warehouse" is a common trade practice whereby the importer files an 'into-bond' bill of entry and stores the goods in a customs bonded warehouse.
The importer then supplies such goods to another person, who then files an 'ex-bond' bill of entry for clearing the said goods from the customs bonded warehouse for home consumption.
The circular said that integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption, which means at the time of filing the 'ex-bond' bill of entry. However, the value addition accruing at each stage of supply would be accounted for, on which Goods and Services Tax (GST) would be payable at the time of clearance of the warehoused goods.
This Circular would be applicable for supply of warehoused goods, while being deposited in a customs bonded warehouse, on or after the 1st of April, 2018.
The move is aimed at ensuring ease of doing business for importers.
In a circular to principal chief commissioners and chief commissioners, the GST policy wing of the CBIC said, "transfer/sale of goods while being deposited in a customs bonded warehouse" is a common trade practice whereby the importer files an 'into-bond' bill of entry and stores the goods in a customs bonded warehouse.
The importer then supplies such goods to another person, who then files an 'ex-bond' bill of entry for clearing the said goods from the customs bonded warehouse for home consumption.
The circular said that integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption, which means at the time of filing the 'ex-bond' bill of entry. However, the value addition accruing at each stage of supply would be accounted for, on which Goods and Services Tax (GST) would be payable at the time of clearance of the warehoused goods.
This Circular would be applicable for supply of warehoused goods, while being deposited in a customs bonded warehouse, on or after the 1st of April, 2018.
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