Supply from one FTWZ to another FTWZ

[Kaustubh Karandikar]

XYZ registered with GST importing goods and storing at PQR (FTWZ – 1) without paying import duty. From FTWZ – 1, goods are ‘Billed To’ by XYZ to ABC (Non – FTWZ) registered with GST, but on instructions of ABC, shipped at DEF(FTWZ – 2). XYZ issues ‘Commercial Invoice’ on ABC. Whether XYZ is required to reverse proportionate input tax credit on common services since no GST is paid on this transaction?

AI Summary

XYZ Must Determine Input Tax Credit Reversal for Duty-Free Goods Transferred Between FTWZs Under GST Rules XYZ, a GST-registered entity, imports goods stored at FTWZ-1 without paying import duty. The goods are billed to ABC, a non-FTWZ entity, but shipped to DEF (FTWZ-2) as per ABC's instructions. XYZ issues a commercial invoice to ABC. The query concerns whether XYZ must reverse the proportionate input tax credit on common services, given that no GST is paid on this transaction.