GST to be levied during final clearance of warehouse goods

In a circular, the Central Board of Indirect Taxes and Customs said that IGST will be levied and collected only at the time of final clearance of warehoused goods for home consumption.

GST to be levied during final clearance of warehouse goods
 
Imported goods kept in bonded warehouses and later cleared from there will not face double taxation under GST.
 
In a circular, the Central Board of Indirect Taxes and Customs said that IGST will be levied and collected only at the time of final clearance of warehoused goods for home consumption.
 
A circular issued in the past had raised an issue of imposition of the Integrated GST (IGST) twice on such transactions. The circular said if a company imports goods and keeps these in a custom-bonded warehouse, it has to pay IGST. And, again, when the goods are cleared for final sale.
 
In a circular to principal chief commissioners and chief commissioners, the GST policy wing of the CBIC said, "transfer/sale of goods while being deposited in a customs bonded warehouse" is a common trade practice whereby the importer files an 'into-bond' bill of entry and stores the goods in a customs bonded warehouse. 
 
Experts say the move will be a step towards enabling business in India.
 
Devashish Polymers had filed a case in the high court (HC) against double taxation. The judgement is still to be out. 
 
“Hopefully, this should now benefit many players who were facing hardship due to this provision,” Aditya Mody of Devashish Polymers was quoted as saying. 
 
Abhishek Rastogi, counsel for the petitioner and partner in Khaitan & Co, said the circular showed the government was actively taking steps to remove almost all issues raised before high courts through writ petitions.
 
The circular said IGST would be levied and collected in accordance with the provisions of the Customs Tariff Act, the Board added.
 
The circular is effective from April 1 this year, allaying doubts over the tax issues prior to that date.
 
Source: BS, ET

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