Chatroom: No GST on sale of uncleared imported goods at ports currently

Importers can transfer goods via bill of lading endorsement without GST if done before customs clearance, while RBI allows simplified closure of small outstanding IDPMS entries

We had imported our raw materials that are lying un-cleared at the Nhava Sheva port. We have not filed the bill of entry because due to some mishaps in our factory, our production is disrupted and we are unlikely to need this raw materials at least for a month or two. Meanwhile, another party is in need of the same material. Can we sell it to that party and if so, how and what is the GST implication? 

If you had imported the goods by sea and the bill of lading is negotiable i.e. made out to order and endorsed in your favour by the shipper, you can transfer the title to the goods by endorsing the bill of lading in the name of the party who wants to buy this material. Thereafter, he can file the bill of entry and clear the goods in his own name. Regarding GST, the provisions of S.No.8 (b) of Schedule III to the CGST Act, 2017 will apply. It covers,  ‘supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption’. 

Therefore, your supply to the local buyer through endorsement of the bill of lading before customs clearance of the goods will be not treated as supply of goods or supply of services. Consequently, for you, there will be no GST liability. 

We had imported certain goods supplied free of charge by the foreign party. While filing the bill of entry, by mistake, our Customs broker had ticked the box for outright sale and paid the customs duty also. Actually, we will not be remitting any money to the party. Our bank says that this entry is outstanding in the IDPMS. How to go about closing this entry? 

RBI’s AP (DIR) Circular no.12 dated 1st October 2025 says that the banks may close any IDPMS entry up to ₹10 lakhs by accepting any reduction in the value in the bill of entry based on your declaration, even in respect of any outstanding IDPMS entry. If the value of the goods is more than Rs.10 lakhs, you may resort to Section 18A of the Customs Act, 1962 read with Customs (Voluntary Revision of Entries Post Clearance) Regulations, 2025 and seek amendment to the bill of entry. Please also take note of the notification no.71/2025-Cus (NT) dated 30th October 2025 regarding the conditions, where no revisions are allowed under Section 18A and notification no.69/2025-Cus (NT) dated 30th October 2025 regarding the fees for making such amendments to the bill of entry. 

I am a student. I want to know whether an airway bill is a document of title to the goods. 

No. In case of an airway bill, the goods are consigned to the named party.  An airway bill is a receipt of goods and an evidence of contract of carriage. 

Business Standard invites readers’ SME queries related to GST, export and importmatters. You can write to us at smechat@bsmail.in