CBIC clarifies the applicability of IGST on goods supplied while being deposited in a customs bonded warehouse

CBIC clarifies the applicability of IGST on goods supplied while being deposited in a customs bonded warehouse

May 29, 2018 FISCAL 0

Central Board of Indirect Taxes and Customs has issued Circular No. 3/1/2018-IGST dated 25th May, 2018 to clarify the applicability of Integrated Goods and Services Tax (IGST ) on goods supplied while being deposited in a customs bonded warehouse.
As per Circular, the integrated tax shall be levied and collected at the time of final clearance of the warehoused goods for home consumption i.e., at the time of filing the ex-bond bill of entry and the value addition accruing at each stage of supply shall form part of the value on which the integrated tax would be payable at the time of clearance of the warehoused goods for home consumption. In other words, the supply of goods before their clearance from the warehouse would not be subject to the levy of integrated tax and the same would be levied and collected only when the warehoused goods are cleared for home consumption from the customs bonded warehouse.

This Circular would be applicable for supply of warehoused goods, while being deposited in a customs bonded warehouse, on or after the 1st day of April, 2018.

For further information please refer the attached Circular.
Source: Central Board of Indirect Taxes and Customs

About the author

Lexplosion:

0 Comments

Would you like to share your thoughts?

Your email address will not be published. Required fields are marked *

Leave a Reply