The Central Board of Indirect Taxes & Customs (‘CBIC’) vide its Circular No. 91/10/2019-GST dated February 18, 2019 has been given clarification regarding the tax payment made for supply of warehoused goods while being deposited in a customs bonded warehouse for the period July, 2017 to March, 2018.
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, because of Circular No. 3/1/2018-IGST dated May 25, 2018, the supply of warehoused goods before their clearance from the warehouse would not be subject to the levy 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.
The Circular can be accessed at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/circular-cgst-91.pdf;jsessionid=DDD8893A869BD01B04670D96E417CBC9