Clarification regarding tax payment made for supply of warehoused goods deposited in customs bonded warehouse by CBIC

Feb 18, 2019 | by Avantis RegTech Legal Research Team

Central Board of Indirect Taxes and Customs (CBIC) on February 18, 2019, has passed a Circular clarifying the applicability of integrated tax on goods transferred or sold while being deposited in a warehouse vide Circular No. 3/1/2018-IGST dated May 25, 2018. It has been brought into notice that 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. Keeping it in mind, it has been decided that during the period July, 2017 to March, 2018, 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.

[Circular No. 91/10/2019-GST]



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