Page 101 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] IN RE : KARDEX INDIA STORAGE SOLUTION PVT. LTD. 427
2017. The applicant being the importer of storage solutions and vertical storage
solutions (machines) from Germany is liable to pay the integrated tax on goods
imported into India in accordance with the provisions of Section 3 of the Cus-
toms Tariff Act, 1975, on the value as determined under the aforesaid Act at the
point when duties of customs are levied on the said goods under Section 12 of
the Customs Act, 1962, in terms of proviso to the sub-section (1) of Section 5 of
the IGST Act, 2017. In view of the said provisions applicant is liable to pay IGST
on the value of the goods imported into India on reverse charge basis.
12. Further, Section 20 of the IGST Act, 2017 read with Section 16 of the
CGST Act, 2017 provides that IGST paid on import of goods can be utilized as
the credit of the input tax if such imported goods used in the course or further-
ance of his business. The Section 16(1) of the CGST Act, 2017 reads as follows :
“16(1) Every registered person shall, subject to such conditions and re-
strictions as may be prescribed and in the manner specified in section 49, be
entitled to take credit of input tax charged on any supply of goods or ser-
vices or both to him which are used or intended to be used in the course or
furtherance of his business and the said amount shall be credited to the
electronic credit ledger of such person.”
It is admitted by the applicant that imported goods are further supplied to vari-
ous industrial customers in India and this implies that imported goods are used
in the course or furtherance of his business. Hence the applicant is entitled to
claim the credit of IGST paid on imported goods in terms of Section 20 of the
IGST Act, 2017 read with Section 16 of the CGST Act, 2017.
13. The applicant is having the permanent business establishment only
in the State of Karnataka and obtained the registration under the Goods and Ser-
vices Tax Act, 2017 in the State of Karnataka bearing GSTIN :
29AADCK5377L1ZW. The applicant uses this GSTIN for the purpose of import
of goods from Germany and also for the payment of IGST on import of goods.
14. The supply of goods, where the location of the supplier and the
place of supply are in :
(a) two different States;
(b) two different Union territories; or
(c) a State and a Union territory,
shall be treated as a supply of goods in the course of inter-State trade or com-
merce in terms of Section 7(1) of the IGST Act, 2017 and supply of goods where
the location of the supplier and the place of supply of goods are in the same State
or same Union territory shall be treated as intra-State supply in terms of Section
8(1) of the IGST Act, 2017 subject to the provisions of Section 10 of the IGST Act,
2017.
15. The place of supply in case of import of goods, is the location of the
importer in terms of Section 11(a) of the IGST Act, 2017 and in the case of appli-
cant the location of the importer is the State of Karnataka where the applicant has
[obtained] the GST registration. Therefore, the applicant though import the
goods to the port nearest to the location of the receipient, said imported goods
are deemed to have been supplied to the location of the importer i.e., Karnataka
and then further supplied to customer. Hence imported goods supplied directly
from the port of import to the customer located in other States or Union territo-
ries other than State of Karnataka, such transaction shall be treated as a supply of

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