MOOWR,2019

[Priyesh Mamnani]

Below are some of the issues in relation to MOOWR, 2019

Q1. What are the transactions covered in this regulations?

Q2. Is it possible to declare only one section of the factory a bonded warehouse? More importantly – can we pick and choose? For example, can we say that bonded warehouse system will be used for capital goods but not for the trade goods and other daily operations?

Q3. What is the investors liability or commitments in this regulation?

[KASTURI SETHI]

Sh.Priyesh Mamnani Ji,

Query-wise reply is as under :-

(1) Yes.

(2) Yes. Answers are contained in Circular No.484/03/2015-LC(pt.) dated 27.10.20 read with Notification No.75/20-CUS(NT) dated 17.8.20, 36/20-Cus dated 17.8.20. Also read Sections 58 A and 65 of the Customs Act.

(3) GST has to be paid on manufactured goods. More details are available in above Notifications and circular.

After going through above, if you still have any doubt, post your query here.

[Priyesh Mamnani]

I am importing capital goods and raw materials from outside India and both capital goods and raw materials are part of my manufacturing process. Is it possible that I take MOOWR benefits only for capital goods and not for raw materials or I have to include raw materials also?

[KASTURI SETHI]

You have posted your cross query without going through Board's circulars and notifications

Benefits are available for both capital goods and inputs. Go through Board's circular mentioned in my reply and then post query, if any doubt. FAQs are available in Board's circular.

I am of the view that you are a qualified person (it appears from drafting of your query) and you have to go through all circulars and notifications mentioned above in your own interest.

[Shilpi Jain]

Q1. What are the transactions covered in this regulations? - If you are into manufacturing or other operations you can get into this scheme. Existence of exports is not a criteria at all

Q2. Is it possible to declare only one section of the factory a bonded warehouse? More importantly – can we pick and choose? For example, can we say that bonded warehouse system will be used for capital goods but not for the trade goods and other daily operations? - Yes. But you will have to demarcate your factory premises to have clear distinction between that part which is under MOOWR and that which is not.

Q3. What is the investors liability or commitments in this regulation? - Pls go through the texts references of which are posted by Kasturi sir. Though there is no minimum investment criteria

AI Summary

MOOWR 2019: Manufacturing Operations Covered, Selective Bonded Warehousing Allowed, GST on Goods Mandatory The discussion revolves around the MOOWR, 2019 regulations, focusing on three main queries. First, the transactions covered under these regulations include manufacturing and other operations, with no export criteria. Second, it is possible to designate only certain sections of a factory as bonded warehouses, allowing selective application to capital goods but requiring clear demarcation. Third, investors must pay GST on manufactured goods, with more details available in specific circulars and notifications. The conversation emphasizes consulting the relevant Board's circulars and notifications for comprehensive understanding and clarifications.