Goods Transfer from FTWZ to DTA Confirmed as Bonded Transactions under CGST Act; IGST and Input Tax Credit Rules Clarified.

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....The case involves the transfer of title of goods from a Free Trade Warehousing Zone (FTWZ) unit to customers in the Domestic Tariff Area (DTA), or multiple transfers within the FTWZ followed by removal from the FTWZ unit. It examines whether this constitutes a bonded warehouse transaction under the CGST Act. The ruling confirms that such transfers fall under para 8(a) of Schedule III of the CGST Act. Additionally, it addresses the levy of Integrated Goods and Service Tax (IGST) on goods stored in the FTWZ unit and supplied to DTA customers, and the reversal of input tax credit of common inputs/capital goods required under the recent amendment to Section 17(3) of the CGST Act. The ruling highlights the significance of FTWZ units as customs bonded warehouses within Special Economic Zones (SEZs) and clarifies the tax implications for such transactions.....