Clarification on Tax Payment for Warehoused Goods (Circular No. 91/10/2019-GST)
<h4><strong>Key Highlights of the Circular</strong>:</h4><ol><li><strong>Background & Issue</strong>:<ul><li>The CBIC had previously clarified in Circular No. 3/1/2018-IGST that from April 1, 2018, the supply of warehoused goods before clearance would not attract integrated tax (IGST).</li><li>However, between July 1, 2017, and March 31, 2018, taxpayers faced difficulties in reporting IGST due to the unavailability of proper facilities on the GST portal.</li></ul></li><li><strong>Incorrect Tax Payments</strong>:<ul><li>During this period, many suppliers mistakenly reported such supplies as intra-state transactions and paid Central Tax (CGST) and State Tax (SGST) instead of IGST.</li></ul></li><li><strong>Government Clarification & Relief</strong>:<ul><li>The CBIC has now clarified that since the tax paid (CGST+SGST) was equal to the required IGST amount, such payments will be <strong>deemed compliant</strong>.</li><li>No additional tax liabilities will be imposed on these transactions.</li></ul></li><li><strong>One-Time Exception</strong>:<ul><li>This decision has been taken as a one-time measure due to the <strong>revenue-neutral impact</strong> and <strong>technical limitations of the GST portal</strong> during the said period.</li></ul></li><li><strong>Trade Notification & Implementation</strong>:<ul><li>The government has instructed tax authorities to <strong>issue trade notices</strong> to inform taxpayers about this relaxation.</li><li>Any difficulties in implementation should be reported to the CBIC.<a href="https://cms.plasament.com/storage/nisha/circular-cgst-91.pdf">circular-cgst-91</a><br> </li></ul></li></ol>