Supply from one FTWZ to another FTWZ, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ registered with GST importing goods and storing at PQR (FTWZ – 1) without paying import duty. From FTWZ – 1, goods are ‘Billed To’ by XYZ to ABC (Non – FTWZ) registered with GST, but on instructions of ABC, shipped at DEF(FTWZ – 2). XYZ issues ‘Commercial Invoice’ on ABC. Whether XYZ is required to reverse proportionate input tax credit on common services since no GST is paid on this transaction?