The CBEC vide Circular No. 46/2017-Cus dated 24.11.2017 has clarified that the sale / transfer of goods lying in a Customs Bonded Warehouse (in-bond transfer) would attract (i) the integrated goods and services tax (IGST) at the time of transfer; and (ii) customs duty comprising of BCD and IGST at the time of removal of such goods from the warehouse. This mean imported goods procured under in-bond transfer would be subjected to double taxation, first under IGST Act and thereafter, under the Customs Act.
After introduction and implementation of GST in India, the Government’s aim is to ensure that GST should not lead to general inflation and for this, it becomes necessary to ensure that benefits arising out of GST implementation be transferred to customers/consumers.
