CUSTOMS PRIVATE BONDED WAREHOUSE

[RAMAKRISHNA M]

Is IGST is applicable at the time of importing of Machinery spares parts @ Customs Private Bonded Warehouse ?

AI Summary

IGST on Machinery Spare Parts: Payable Only Upon Warehouse Clearance, Not During Importation. Input Tax Credit Available. A discussion on the applicability of Integrated Goods and Services Tax (IGST) on machinery spare parts imported into a Customs Private Bonded Warehouse. Participants clarified that IGST is not required at the time of warehousing; it is payable only when goods are cleared from the warehouse. The procedure under the Customs Act remains unchanged with the introduction of GST. Imported goods are considered interstate supplies, and IGST is applicable upon clearance, allowing for Input Tax Credit (ITC) utilization during subsequent sales. The consensus supports the view that duties are paid only when goods exit the warehouse.