TaxTMI 
TaxTMI 
Subject: Applicability of IGST / GST on goods transferred / sold while being deposited in a warehouse. -reg.
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Date: 28.11.2017 PUBLIC NOTICE NO. 41 /2017 Subject: Applicability of IGST / GST on goods transferred / sold while being deposited in a warehouse. -reg. Attention of the Importers, Customs Brokers, Steamer Agents, Liners and the members of Trade is invited to the Board's Circular No.46/2017- Customs dated 24.11.2017 on the above subject. 2. Ch IX of the Customs Act provides for depo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f storage at the customs bonded warehouse, cannot be added to the value of the goods, for the purpose of levy of duties of customs at the stage of ex-bonding. Further, clause (b) of sub-section (1) of Section 15 of the Customs Act provides that the rate of duty or tariff valuation for an ex-bond Bill of Entry shall be the date on which it is filed. There is no provision to vary the assessable valu....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... may be noted that as per sub-section (2) of section 7 of the IGST Act, any supply of imported goods which takes place before they cross the customs frontiers of India, shall be treated as an inter-State supply. Thus, such a transaction of sale/transfer will be subject to IGST under the IGST Act. The value of such supply shall be determined in terms of section 15 of the CGST Act read with section ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....read with section 15 of the CGST Act, 2017 and the rules made thereunder and the tax liability shall be reckoned as per section 9 of the CGST Act, 2017. 5.2 However, it may be noted that so long as such goods remain deposited in the warehouse the customs duty to be collected shall remain deferred. Further, it is only when such goods are ex-bonded under section 68, shall the deferred duty be col....