Saturday, 25 November 2017

Transfer / sale of warehoused goods exigible to IGST; Customs duty payable at ex-bonding

CBEC clarifies that transfer / sale of warehoused goods by importer to any other person falls within definition of “supply” as per Section 7 of CGST Act, taxable in terms of Section 9 of CGST Act r/w Section 20 of IGST Act; Since any supply of imported goods which takes place before they cross customs frontier of India shall be treated as an ‘inter-state’ supply u/s 7(2) of IGST Act, such transaction of sale / transfer will be subject to IGST; Value of such supply shall be determined in terms of Section 15 of CGST Act r/w Section 20 of IGST Act and rules thereunder; However, so long as such goods remain deposited in warehouse the customs duty to be collected shall be deferred; It is only when such goods are ex-bonded u/s 68 of Customs Act that same shall be collected at the value as had been determined u/s 14 of Customs Act in addition to IGST leviable on transfer / sale : CBEC Circular 

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