GST on sale of goods lying in customs warehouse, before payment of customs duty

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....ST on sale of goods lying in customs warehouse, before payment of customs duty<br> Query (Issue) Started By: - Aap Consulting Pvt. Ltd. Dated:- 7-7-2026 Last Reply Date:- 16-7-2026 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Dear Experts Please guide. X imports goods in India and files Bill of Entry for Home Consumption; the goods are lying in Customs Warehouse pending payment of du....

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....ty. Before payment of duty, X sells goods to Y; however after the sales X pays the Customs Duty and gets OOC. Now the questions are: 1. Whether sales from X to Y will be liable to GST? 2. Is there any legal prohibition under Customs Act or GST Act on sale of goods imported pending clearance? 3. If the import is completed only after payment of duty, then this sales from X....

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.... to Y would be domestic sales or high sea sale? Reply By Sadanand Bulbule: The Reply: The Customs Act, 1962: 47. Clearance of goods for home consumption. [(1)] Where the proper officer is satisfied that any goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if any, assessed thereon and any charges payable under this Act in respect of t....

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....he same, the proper officer may make an order permitting clearance of the goods for home consumption. Reply By Shilpi Jain: The Reply: Supply of warehoused goods to any person before clearance for home consumption; - is neither supply of goods nor services. No GST liable if sold before clearance from warehouse. &nbsp;<br> Discussion Forum - Knowledge Sharing ....