Circular No.ES/ 244/2017-18 November 29, 2017
To: Members of the Council
Dear Member,
We would like to inform you that the Central Board of Excise and Customs (CBEC) has issued clarification vide Circular No. 46/2017 dated 24th November, 2017 on applicability of GST on goods transferred / sold while being deposited in a warehouse under the new Goods and Service Tax (GST) regime.
It may be noted that as per the IGST Act –
However, in respect of goods stored in a customs bonded warehouse, there is a possibility that certain cases may involve an additional taxable event, if a transfer of ownership of warehoused goods takes place between the importer and another person, before clearance of the goods, whether for home consumption or for export.
The Board has now clarified that –
An illustrative chart on in bond sales and clearance thereof is attached as “Annexure” in the above Circular.
Members may please make a note of the above.
Thanking You,
S. BALARAJU
EXECUTIVE DIRECTOR