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GST IMPORT PURCHASE OF GOODS

NAMRATA (STUDENT) (84 Points)

14 May 2020

DEAR SIR,

WE HAVE IMPORTED THE GOODS AND STORED THE GOODS AT BONDED WARE HOUSE AT NAVA SHEVA PORT AND THE SAME GOODS HAVE SOLD ( EXPORT SALES OUT OF INDIA). NO GST WAS PAID ON IMPORT AS WE HAVE SUBMITTED BOND.

IN SHIPPING BILL FOR IMPORT PURCHASE IGST DUTY AMT IS SHOWN . BUT WE HAD NOT PAID IGST AS WE SUBMITTED BOND.

KINDLY ADVISE GSTR3B & GSTR1 IMPORT PURCHASE ENTRY IN GST RETURN

THANKS & REGARDS

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3 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14692 Points)
Replied 14 May 2020

In my opinion , Bond is applicable for export of Goods or service without payment of IGST , however in case of Import purchase you have pay IGST under RCM basis . You have to show in GSTR 1 under RCM and can take credit in GSTR3B

please confirm with others also .

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 15 May 2020

Have you filed any Ex-Bond bill of Entry ?????

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 15 May 2020

Dear Namrata

The custom Act ,1962 provides for removal of goods from Custom station to a warehouse without payment of duty.The said Act has been amended to include "warehous" in the Defination of "Custom Area"

So the goods being transferred or deposited in custom bonded warehouse ,the Importer is not required pay duty & IGST on same .

As per Circular 3/1/2018 GST : the Importer file into-bond bill of entry & stores the goods into custom bonded warehouse & thereafter supplies such goods to some other person who then file Ex-bomd bill of entry for clearing the said goods from Custom bonded warehouse for home consumption then IGST & duty is leviable.

And if we read the sub Section (2) of Section 7 of IGST Act , it's not supply till the imported goods cross the Custom Frontiers of India. And as per Circular IGST is levied & collected at the time of clearances of goods from warehouse for home consumption.

Since the goods were directly exported from custom bonded warehouse & not brought for consumption in India , not crossing the custom frontier. So it's not an supply , it can be cover under Merchant Export

SO ITS MERCHANT Export & cover under Schedule III , you need to report such in Table 8 of GSTR 1. & In GSTR 3B it can be reported under Table 3.1(e)

Final conclusion : Neither the supply goods nor supply of Services. So No Duty & IGST is applicable.