SALE FROM BONDED WAREHOUSE TO OUT OF INDIA

[NILESH PITALE]

DEAR EXPORTS

ONE OF THE MY CLIENT HAVE BEEN IMPORTED THE GOODS AND STORED THE GOODS AT BONDED WARE HOUSE AT NAVA SHIVA PORT AND THE SAME GOODS HAVE SOLD OUT AT TURKY ( OUT OF INDIA). NO DUTY PAID ON IMPORT.

QUAIRY : WHEATHER IT IS NON GST SALE OR CONSIDER AS EXPORT SALE LABILE TO IGST IF LUT HAS NOT TAKEN

PLEASE GUIDE

THANKING YOU

AI Summary

Goods Sold from Bonded Warehouse to Turkey Are Non-GST Sales; No Import Duty Under Section 69(1) Customs Act A client imported goods stored at a bonded warehouse in India and sold them to Turkey without paying import duty. The query was whether this constitutes a non-GST sale or an export sale liable to IGST if no Letter of Undertaking (LUT) was taken. Responses clarified that since the goods were sold before crossing the customs barrier, it is similar to high sea sales, and no duty is payable. Section 69(1) of the Customs Act allows warehoused goods to be exported without import duty if the proper shipping documentation is filed. Thus, GST does not apply.