GST

Payment of IGST on supply of warehoused goods deposited in customs bonded warehouse

Payment of IGST on supply of warehoused goods while deposited in a customs bonded warehouse for the period July, 2017 to March, 2018 – Clarification

Circular No. 91/10/2019-GST

F. No. CBEC-20/16/04/2018 – GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
***

New Delhi, Dated the 18th February, 2019

To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (All)

Madam/Sir,

Subject: Clarification regarding tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018 – Reg.

Attention is invited to Circular No. 3/1/2018-IGST dated 25.05.2018 whereby applicability of integrated tax on goods transferred/sold while being deposited in a warehouse (hereinafter referred to as the “warehoused goods”) was clarified. In the said circular, it was enunciated that from 1st of April, 2018 the supply of warehoused goods before their clearance from the warehouse would not be subject to the levy of integrated tax.

2. It has been brought to notice of the Board that during the period from 1st of July, 2017 to 31st of March, 2018 (hereinafter referred to as the “said period”), the common portal did not have the facility to enable the taxpayer to report payment of integrated tax, in the details required to be submitted in FORM GSTR-1, for such supplies especially where the supplier and the recipient were located in the same State or Union territory. Hence taxpayers making such supplies have reported such supplies as intra-State supplies and discharged central tax and state tax instead of integrated tax accordingly. Now, representations have been received from trade to clarify the same.

3. In order to ensure uniformity in the implementation of the provisions of law across the field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017, hereby issues the following instructions.

4. Supply of warehoused goods while deposited in custom bonded warehouses had the character of inter-State supply as per the provisions of Integrated Goods and Services tax Act, 2017. But, due to non-availability of the facility on the common portal, suppliers have reported such supplies as intra-State supplies and discharged central tax and state tax on such supplies instead of integrated tax. In view of revenue neutral position of such tax payment and that facility to correctly report the nature of transaction in FORM GSTR-1 furnished on the common portal was not available during the period July, 2017 to March, 2018, it has been decided that, as a one-time exception, suppliers who have paid central tax and state tax on such supplies, during the said period, would be deemed to have complied with the provisions of law as far as payment of tax on such supplies is concerned as long as the amount of tax paid as central tax and state tax is equal to the due amount of integrated tax on such supplies.

5. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

6. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board. Hindi version will follow.

(Upender Gupta)
Pr. Commissioner (GST)

----------- Similar Posts: -----------
Share

Recent Posts

  • Income Tax

CIT(A) is required to communicate the notice to email id mentioned in Appeal Form 35

CIT(A) is required to communicate the notice through the email id available in Form 35 of the  appeal memo as…

6 hours ago
  • Income Tax

Opportunity of personal hearing u/s 144B(6)(viii) must even if assessee had not requested

Section 144B(6)(viii) cannot be read to mean that opportunity of personal hearing may be granted only where the assessee specifically…

10 hours ago
  • Income Tax

New functionality in AIS to display status of information confirmation process in real-time

CBDT releases new functionality in AIS for taxpayers to display status of information confirmation process in real-time. Taxpayers can now…

14 hours ago
  • Income Tax

No enduring benefit arises if software project abandoned – Supreme Court dismisses SLP

No enduring benefit arises when software project was abandoned due to change in technology. Supreme Court dismisses SLP of Department…

1 day ago
  • Empanelment

Punjab Sind Bank Concurrent Audit Online Empanelment FY 2024-25. Last date 08.06.2024

Punjab & Sind Bank Concurrent Audit Online Empanelment FY 2024-25 Punjab & Sind Bank Concurrent Audit application has been invited…

1 day ago
  • Income Tax

AO was justified to estimate profits of civil construction @10% applying section 44BBB

AO was justified to estimate profits of civil construction @10 percent applying provisions of section 44BBB In a recent judgment,…

1 day ago