Suppose Mr.A imports the goods and while the goods are still lying in bonded warehouse Mr.A sells the goods to Mr.B so that the goods are cleared by Mr.B from warehouse...
Question arises that will Mr.B have to pay GST twice that is first to Mr.A and the other when he clears from customs warehouse...???
No Double GST: High Sea Sale Clarified-IGST Payable Once Upon Clearing Goods from Customs Warehouse A user inquired whether Mr. B would have to pay GST twice when purchasing goods from Mr. A, who imported them and stored them in a bonded warehouse. Respondents clarified that GST is not charged twice. It is considered a High Sea Sale, and IGST is payable only once when Mr. B clears the goods from the customs warehouse. The Customs Act allows in-bond sales without immediate duty payment. Mr. B, as the new owner, pays the customs duty, including IGST, upon clearance. The Act's amendment includes warehouses in the 'customs area' to facilitate this process. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
