Imported Goods stored in 3P FTWZ being sold and moved to Bonded Warehouse on 'as is where is' basis under MOOWR scheme are not liable to GST

Last updated: 17 June 2024

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The Tamil Nadu Authority for Advance Ruling has determined that imported goods stored in a third-party Free Trade Warehousing Zone (FTWZ) and subsequently sold on an 'as is where is' basis to a bonded warehouse under the MOOWR scheme are not subject to GST. This decision is based on the classification of such transactions under Clause 8(a) of Schedule III of the CGST Act, which covers the supply of warehoused goods before clearance for home consumption.

Court :
Tamil Nadu AAR

Brief :
The Tamil Nadu AAR, in the matter of M/s. Sunwoda Electronic India Private Limited [Advance Ruling No. 06/ARA/2024 dated April 30, 2024], has held that sale of goods from third-party free trade warehousing zone ("3P FTWZ") on 'as is where is' basis to bonded warehouse under Manufacturing and Other Operations in Warehouse Regulations ("MOOWR") are not liable to GST as the same is covered under Clause 8(a) of Schedule III of the CGST Act, which reads as "Supply of warehoused goods to any person before clearance for home consumption".

Citation :
Advance Ruling No. 06/ARA/2024 dated April 30, 2024

Daily Limit Reached