Bonded warehouse

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2016
To whom may it concern.

I'm working at a company which manufactures chemical products, epoxy resin, and exports them all over the world.

We are planning to establish bonded warehouse in India (Mumbai region) and we would like to ask you few questions about it.

Currently, we are planning to manufacture epoxy resin in Korea and export them to India.

Once goods arrive in India, we will keep them in bonded warehouse.

In above circumstance, Please provide us the answers for below questions.

1. What will be the imposed tax rate for stored goods sold to customer in India?

2. if we sell those stored goods to other nearby countries like Sri Lanka or Bangladesh how much tax rate will be imposed?

3. Please tell us if above domestic and international trades must use Indian rupee.

4. As far as I know, GST is different for each state and I heard a rumor that there is a possibility of unification. Please tell us its genuinity and if so, how will it change?

Your support will be very appreciated.

Thank you.

Amol S Joglekar

Amol S Joglekar (Expert)
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19 September 2016 A. You claim that you are manufacturing epoxy resin in Korea and export them to India......Please note for India, this is NOT export...It is IMPORT for India
B. GST is NOT replacing CUSTOMS duty.
C. You are going to have godown at Mumbai i.e. Maharashtra
D. GST is on "transaction value" and it is destination based.
E. if you sell from mumbai to any part of Maharashtra.. CGST + SGST will be appplicable
F. If you sell from Mumbai to Other than Maharashtra but within India IGST will be applicable (Which is expected to be 1 % above the total of CGST+SGST)
G. If you sell from Mumbai to outside India, GST will not be applicable.
H. SGST (State GST.....every state has the power to determine its rate of SGST....so in most cases, the rates may be different)