Question9:
My query is: Suppose Mr. 'X' Imports the goods and while the goods are still
lying in Custom bonded warehouse Mr. 'X' sells the goods to Mr. ‘Y’ so that the
goods are cleared Mr. 'Y' from Custom Warehouse. Now the question arises that
- will Mr. 'Y' have to pay GST twice -- that is first to Mr. 'X' and again
when he clears goods from customs warehouse.
Answer:
It appears the client had in mind High Seas sale. Once the High Seas sale takes
place, Customs clearance would be done by the person in whose favor High Seas
sale has been allowed and all the taxes would be paid by that person. But in
your case the goods are already taken in ware House so it is not covered under
definition of high seas sales. So following is the answer If after the
importation goods are placed in bonded warehouse, then it is the responsibility
to clear all dues by the importer before the goods are sold and handed over the
prospective buyer. IGST would be paid only once because when the goods are
warehoused in bonded warehouse applicable taxes are not paid on them at that
stage. Taxes become payable only when the goods are de-bonded for clearance from
the bonded warehouse. (Reply dt. 15/11/2017)