Intra State
Payment of CGST and SGST Accepted instead of IGST Applicable on Warehoused
Supply
·
One Time Exception Allowed
[Circular No.
91/10/2019-GST dated 18 February 2019]
Seeks to give
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.
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.
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.
F. No. CBEC-20/16/04/2018 - GST