Clarification regarding supply made from bonded warehouses between July, 2017 to March 2018
According to Circular No. 91/10/2019, Dated: 18th February, 2019
Applicability of Integrated tax when supply is made from Bonded warehouse before clearance from warehouse was exempted through Circular No. 3/1/2019, dated: 25.05.2018 from 1st April, 2018.
However, for the period from July 2017 to March 2018, IGST was applicable on such supply but, common portal did not have the facility to enable payment of IGST in GSTR-1 when the supplier and recipient were located in same state/union territory, resulting supplier paid CGST & SGST/UTGST instead of IGST against such supply.
Supply of warehoused goods before clearance had the character of inter-State supply as per the provisions of Integrated Goods and Services tax Act, 2017, hence one time exemption have been provided through this circular, now if CGST & SGST have been paid for the period of July 2017 to March 2018 then it would be deemed that Provision of IGST Act, 2017 has been complied and further no penalty and interest would be levied.
