In re Sunwoda Electronic India Private Limited (GST AAR Tamil Nadu)
In the case of Sunwoda Electronic India Private Limited, the Advance Ruling Authority (AAR) of Tamil Nadu provided a detailed examination regarding the applicability of GST on the sale of goods warehoused in a third-party Free Trade Warehousing Zone (3P FTWZ) on an “as is where is” basis to a customer who subsequently clears the goods to a bonded warehouse under the MOOWR Scheme. The ruling concluded that GST is not leviable on such transactions.
Key Points from the Ruling:
Nature of the Query: The applicant, Sunwoda Electronic India Private Limited, sought clarity on whether GST is applicable on the sale of their goods stored in a 3P FTWZ when these goods are sold to a customer who then clears them to a bonded warehouse under the MOOWR Scheme.
Background: The applicant stores imported goods in a 3P FTWZ managed by DHL Supply Chain India Pvt. Ltd. (DHL). The warehousing agreement between Sunwoda and DHL includes services like storage, customs clearance, and transportation.
FTWZ and SEZ Definition: Free Trade Warehousing Zones (FTWZ) are considered Special Economic Zones (SEZ) as per the SEZ Act, 2005. These zones are deemed foreign territories for trade operations and customs purposes, and goods stored in these zones are not subject to domestic duties until they are cleared for home consumption.
