No GST Leviable on the Sale of Goods Warehoused in Third Party FTWZ under MOOWR Scheme: AAR [Read Order]

The Tamil Nadu Authority for Advance Rulings (AAR) determined that Goods and Services Tax (GST) does not apply to the sale of goods stored in a third-party Free Trade Warehousing Zone (FTWZ) to customers who subsequently clear them to a bonded warehouse under the Merchandise Warehouse and Withdrawal for Re-export (MOOWR) Scheme. \r

Represented by Sahana and Pavan Varshiney, M/s. Sunwoda Electronic India (P) Ltd. argued that the transaction fell under Schedule III of the CGST Act, particularly Para 8(a), exempting the supply of warehoused goods before clearance for home consumption. \r

The AAR bench, comprising D. Jayapriya and A. Valli, ruled in favor of the applicant, exempting the transaction from GST.