Do You Need to Pay IGST for Imports Under MOOWR?

Introduction
One of the key benefits of the MOOWR scheme is relief from immediate tax outflow at the time of import. This includes deferment of Integrated Goods and Services Tax.

IGST at the Time of Import
Under MOOWR, imported goods can be brought into a bonded warehouse without payment of customs duty and IGST at the time of import. Both duties are deferred as long as the goods remain in bonded status.

Storage and Use in Bond
Imported goods may be stored or used for manufacturing and other approved operations inside the bonded warehouse without paying IGST. This helps reduce working capital blockage.

Domestic Clearance
IGST becomes payable only when goods or finished products are cleared into the domestic market. The tax is calculated based on the value and rate applicable on the date of clearance from the warehouse.

Exports From the Warehouse
If goods or finished products are exported directly from the MOOWR warehouse, no IGST is payable on the imported inputs used in their manufacture.

No Time Bound Payment
There is no fixed time limit for payment of IGST under MOOWR. The liability arises only upon domestic clearance.

Compliance Requirement
Accurate inventory and clearance records are essential to ensure correct calculation and payment of deferred IGST.

Learn more about MOOWR scheme at https://www.jparks.co/services/apply-for-moowr-scheme/