Supply from Customs Bonded Warehouse

[Kaustubh Karandikar]

XYZ(Supplier) had kept the imported goods in to Customs Bonded Warehouse without payment of import duty. These goods were re-exported directly from Customs Bonded Warehouse without filing ex-bond bill of entry and without payment of any customs duty. A simple Commercial Invoice (No Tax Invoice under GST was prepared) was prepared by XYZ along with other export documents such as shipping bill etc. 1) Is the procedure followed correct? 2) In GST Return it has to be shown as Export at Nil duty or under exempted goods?

AI Summary

Goods in Bonded Warehouse Exported Without Duty via Commercial Invoice; Section 69 Clarifies Procedure for GST Returns. A supplier stored imported goods in a Customs Bonded Warehouse without paying import duty and re-exported them directly without filing an ex-bond bill of entry or paying customs duty, using only a commercial invoice. Queries were raised about the correctness of this procedure and how it should be reported in GST returns. It was clarified that goods in a bonded warehouse are considered outside Indian territory until customs duties are paid, and exporting them directly with a commercial invoice is sufficient. Reference was made to Section 69 of the Customs Act, 1962 regarding this procedure.