To promote the “Make in India” initiative and as part of the ease of doing business measures, the Central Board of Indirect Taxes and Customs (CBIC), had notified the Manufacture and Other Operations in Warehouse (No. 2) Regulations, 2019 (Scheme). This Scheme enabled businesses to import raw materials and capital goods without payment of duty for manufacturing and other operations in a bonded manufacturing facility for exports, while allowing import duty deferral for the domestic market.
The CBEC has issued circular no. 46/2017-Cus dated 24 November, 2017, clarifying that in case of sale of goods lying in a customs bonded warehouse before its clearance for home consumption, IGST is payable on the transaction of supply between original importer and the buyer, and also, at the time of clearance of such goods by buyer, as a part of the customs duty. Read More »