TRANSFER OF GOODS FROM BONDED WAREHOUSE TO OUR OWN SEZ UNIT

[parag shetye]

Dear Sir,

We have imported and bonded the goods to be used at our Maharashtra Plant & now we want to transfer these bonded goods to our own SEZ location in Gujrat.

Kindly suggest a procedure & document requirements.

Regards,

Parag Shetye

[email protected]

[DR.MARIAPPAN GOVINDARAJAN]

Please refer Rule 38 of Special Economic Zone Rules, 2006 in this regard.

[parag shetye]

Dear Sir,

Thanks for your reply, The rule 38 is about the transfer of goods from one SEZ unit to another SEZ unit. In my case We want to transfer the goods from Custom bonded warehouse (Nhavasheva) to our own SEZ unit at Dahej, Gujrat.

[CASeetharaman KC]

The supply made by you to an SEZ from a bonded warehouse would be considered as an import by the SEZ for which the following customs notification specifically exempts IGST on supplies made to an SEZ

Notification No. 64/2017- Customs dated 5.7.2017 – hereby exempts all goods imported by a unit or a developer in the Special Economic Zone for authorised operations, from the whole of the integrated tax leviable thereon under subsection (7) of section 3 of the Customs Tariff Act, 1975 (51 of 1975) read with section 5 of the Integrated Goods and Service Tax Act, 2017 (13 of 2017).

You would have to raise an invoice /delivery note which would carry the value of the goods and IGST should be mentioned as ZERO

AI Summary

IGST exemption: supplies from bonded warehouse to SEZ treated as import; invoice must show IGST as zero.
Transfer of goods from a customs bonded warehouse to an SEZ unit is treated as an import by the SEZ; Rule 38 (which covers transfers between SEZ units) is not applicable. A customs notification exempts IGST on goods imported by an SEZ unit or developer for authorised operations. The supplier must raise an invoice/delivery note stating the goods' value and showing IGST as zero to reflect the exemption and comply with customs requirements.