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2019 (2) TMI 195 - AUTHORITY FOR ADVANCE RULING, TAMILNADULevy of IGST - removal of goods from the FTWZ unit - Goods warehoused in FTWZ and supplied to a DTA unit - applicability of Circular No. 46/2017 - Held that:- In the case at hand, the applicant imports the goods from BNSL, files ‘into bond Bill of Entry’ and stores the goods in the FTWZ run by an independent third party but the legal possession of the goods are with BSNL. When the Applicant receives orders from their customers in India, BNSI clears the goods on filing the ‘BOE for Home Consumption’ and pays the appropriate customs duty - the Applicant is storing the imported goods in FTWZ which is a Customs bonded warehouse. It is evident that removal from the FTWZ to DTA is the point of deferred levy/payment of Customs Duty, i.e., at the time of clearance for home consumption from FTWZ. Further, as explained in the Circular 3/ 1/2018-IGST dated 25th May 2018, the goods are not to be subjected to IGST when bonded and the payment of integrated tax is to be effected when the goods are removed for home consumption from the bonded warehouse, under the Provisions of Customs Tariff Act. Therefore, there is no requirement to pay IGST under the provisions of GST law at the time of clearance from the FTWZ. In the case at hand, the Applicant proposes to effect sale when the goods are bonded and then files Bill of Entry for Home Consumption and clears the goods from the FTWZ on payment of appropriate Custom duties (BCD & IGST). Therefore, as clarified in the Circular No.3/1/2018-IGST dated 25th May 2018, the payment of IGST again at the point of clearance from the FTWZ to DTA do not arise for supply of warehoused goods, while being deposited in a customs bonded warehouse/FTWZ on or after 01.04.2018 - Circular No. 46/2017 Customs dated 24.11.2017 is not applicable for supply of warehoused goods, while being deposited in a customs bonded warehouse/FTWZ on or after 01.04.2018.
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