Clarification regarding tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018

Inter State supply characterization: one time deeming of central and state tax paid as discharge of IGST for warehoused goods.

Supplies of goods from customs bonded warehouses are inter State supplies; owing to a portal deficiency taxpayers reported and paid central tax and State tax instead of IGST. As a one time exception, where the sum of central tax and State tax paid during the affected period equals the IGST due, such payment will be deemed compliance with IGST payment obligations. The Board instructs field formations to publicise the Circular and report implementation difficulties.