Saturday, 26 May 2018

IGST on warehoused goods supply leviable during clearance for home consumption, clarifies CBIC

CBIC issues clarification on applicability of IGST on goods supplied while being deposited in a customs bonded warehouse; States that IGST shall be levied and collected at time of final clearance of warehoused goods for home consumption i.e., at the time of filing ex-bond bill of entry; Value addition accruing at each stage of supply shall form part of the value on which IGST would be payable at the time of clearance of warehoused goods for home consumption; In other words, supply of goods before their clearance from warehouse would not be subject to IGST and same would be levied and collected only when warehoused goods are cleared for home consumption from customs bonded warehouse, explains CBIC; Said Circular would be applicable for supply of warehoused goods, while being deposited in a customs bonded warehouse, on or after the April 1, 2018 : CBIC Circular 

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