IGST on in bond transfers applies when ownership of warehoused imports is transferred, requiring IGST on the supply value. A transfer or sale of imported goods while deposited in a customs bonded warehouse is a supply liable to IGST as an inter State supply, with value determined under the CGST valuation provisions read with the IGST Act. Customs assessable value remains fixed at import under section 14 of the Customs Act and deferred duties are collected only on ex bonding at that import valuation; thus IGST may be payable on the supply value before ex bonding while customs duty is paid later on ex bond clearance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
IGST on in bond transfers applies when ownership of warehoused imports is transferred, requiring IGST on the supply value.
A transfer or sale of imported goods while deposited in a customs bonded warehouse is a supply liable to IGST as an inter State supply, with value determined under the CGST valuation provisions read with the IGST Act. Customs assessable value remains fixed at import under section 14 of the Customs Act and deferred duties are collected only on ex bonding at that import valuation; thus IGST may be payable on the supply value before ex bonding while customs duty is paid later on ex bond clearance.
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