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. - GST - States - 52/2018-19-GST

Government of Goa Department of Commercial Taxes Vikrikar Bhavan, Panaji- Goa - 403001 Ph: 0832-2229430 CCT/26-4/2017-2018/C/4177 email: [email protected] Dated: 19 th February, 2019 CIRCULAR (No. 52/2018-19-GST) 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 Reg. 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 1 st 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 noticed that during the period from 1 st of July, 2017 to 31 st 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 stale 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 Commissioner, in exercise of its powers conferred by section 168 (1) of the Goa 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. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the undersigned. (Dipak M. Bandekar) Commissioner of State Tax Note : Similar circular is issued under Central Goods and Services Tax Act, 2017 by the GST Policy Wing, Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance, GOI, New Delhi vide Circular No. 91/10/2019-GST dated 18/02/2019.