Home Case Index All Cases GST GST + AAR GST - 2023 (8) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 1299 - AAR - GSTBonded warehouse transaction covered under Schedule III of the CGST Act, 2017 r/w CGST Amendment Act, 2018 or not - transfer of title of goods by the Applicant to its customers or multiple transfers within the FTWZ - applicability of Integrated Tax (IGST) Circular No. 3/1/2018 dated 25.05.2018. HELD THAT:- Free Trade Warehousing Zone is a Special Economic Zone wherein mainly trading and warehousing and other activities related thereto are carried on. It is a deemed foreign territory within the geography of India for the purpose of tariff and trade. The Special Economic Zones Act, 2005 and the Special Economic Zones Rules, 2006 are the legal framework for FTWZ. Instructions are also issued by the Ministry of Commerce & Industries from time to time to clarify various operational aspects of FTWZ - paragraph 8(a) in the Schedule III is specific to the warehoused goods lying in the warehouses licensed under Customs Act, 1962. Whereas the transactions narrated in the application are in FTWG, which are warehouses governed under the provisions of SEZ Act, 2005 and not licensed under Customs Act, 1962. Therefore, the transactions in the FTWG will not be covered under Schedule III of CGST Act, 2017 read with CGST Amendment Act, 2018. Whether the Integrated Tax (IGST) Circular No. 3/1/2018 dated 25.05.2018 is applicable to the present factual situation? - HELD THAT:- Circular No. 03/01/2018 - IGST, dated 25th May 2018 has been rescinded vide Circular No. 04/01/2019 -IGST, dated 01.02.2019, in view of the amendment made in Schedule III of the CGST & TNGST Act, 2017, by inserting Paragraph No. 8(a), so as to provide that the ‘ supply of warehoused goods to any person before clearance for home consumption’ shall be neither a supply of goods nor a supply of service.
|