TMI BlogApplicability of IGST / GST on goods transferred / sold while being deposited in a warehouse. -reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... incipal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Customs Subject: Applicability of IGST / GST on goods transferred / sold while being deposited in a warehouse. -reg. References have been received from the trade regarding levy of IGST/GST on sales of goods deposited in a customs bonded warehouse. 2. Ch IX of the Customs Act provides for d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse or costs of storage at the customs bonded warehouse, cannot be added to the value of the goods, for the purpose of levy of duties of customs at the stage of ex-bonding. Further, clause (b) of sub-section (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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter referred to as, IGST Act ). It may be noted that as per sub-section (2) of section 7 of the IGST Act , any supply of imported goods which takes place before they cross the customs frontiers of India, shall be treated as an inter-State supply. Thus, such a transaction of sale/transfer will be subject to IGST under the IGST Act . The value of such supply shall be determined in terms of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue 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 . 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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