Activities or Transaction Excluded from Supply - Para 8 of Schedule III [Read with Section 7(2)] - GST Ready Reckoner - GST

Activities or Transaction which shall be treated neither as supply of goods nor as supply of services - Schedule III As per Section 7(2) , There are exception of supply, para 8 of Schedule III to the CGST Act, 2017 provides the Activities or transaction which shall be treated as neither supply of goods nor supply of services. (In other words, exclude from the supply for the purposes of GST) (a) Supply of Warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. ( I.e. High Seas Sales) Important Notifications Circulars 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. [ Circular No. 91/10/2019-GST dated 18.02.2019 ] Clarification regarding applicability of Integrated Goods and Services Tax (integrated tax) on goods supplied while being deposited in a customs bonded warehouse. [ Circular No. 3/1/2018-IGST dated 25.05.2019 ] [ Such Circular rescinded vide Circular No. 04/01/2019-GST dated 01.02.2019 ] Clarification regarding applicability of IGST / GST on goods transferred / sold while being deposited in a warehouse. [ Circular No. 46/2017-Customs dated 24.11.2017 ] Important Case Laws The activity of the transfer of title of goods stored in FTWZ Unit by the applicant to its customers in Domestic Tariff Area (DTA) or multiple transfer within the FTWZ , will get covered under para 8 (a) of Schedule-III of the CGST/TNGST Acts, 2017. [ M/S. Panasonic Life Solutions India Private Limited - 2024 (8) TMI 695 - AAR, Tamilnadu ] For supply of warehoused goods , while being deposited in FTWZ on or after 01.04.2018, the applicant is not liable to pay IGST at the time of removal of goods from the FTWZ to DTA under the provisions of IGST Act in addition to the duties payable under Customs Tariff Act, 1975 on removal of goods from the FTWZ unit. [ M/S. Sadesa Commercial Offshore De Macau Limited - 2019 (2) TMI 194 - Authority For Advance Ruling, Tamilnadu ]