TMI Blog2020 (3) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 subsection (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. Whether applicant can issue tax invoice with IGST to the customer? - HELD THAT:- 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 applicant the location of the importer is the state of Karnataka where the applicant has obtain the GST registration. Therefore, the applicant though ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. M/S. Kardex India Storage Solution Private Limited, No. 507, Brigade Rubix, 5th Floor, HMT Watch Factory Road, Peenya 1st Stage, Bangalore - 560022, is private limited company registered with GSTIN: 29AADCK5377L1ZW, filed an application for Advance Ruling under Section 97 of the CGST Act, 2017 read with Rule 104 of the CGST Rules Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules 2017, in FORM GST ARA-01 and discharged the fee of ₹ 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is the importer of storage solutions and vertical storage solutions (machines) from Germany and distributes the imported goods to Industrial customers all over India. Presently, applicant is transporting the imported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of import is located unless the importer has some permanent establishment or business place in the port of import. In view of this, the applicant submitted that place of supply for the imported goods would be the registered place of business premises. 5. The applicant further submitted that in terms of section 7(2) of the IGST Act 2017, the supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-state trade or commerce. He has further submitted that as per the provisions of the IGST Act, 2017 though the imported goods are supplied directly from the port of import to the customer's place, it is deemed that imported goods ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the KGST Act. 9. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Jayaram, Authorised Representative during the personal hearing. We also considered the issues involved, on which advance ruling is sought by the applicant, relevant facts the applicant's interpretation of law. 10. On verification of the nature of the activity carried out by the applicant, it was observed that the applicant is an importer of storage solutions and vertical storage solutions (machines) from Germany and supplied to Industrial customers all over I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 furtherance 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 restrictions 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 services 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... importer is the state of Karnataka where the applicant has obtain the GST registration. Therefore, the applicant though import the goods to the port nearest to the location of the recipient, 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 territories other than state of Karnataka, such transaction shall be treated as a supply of goods in the course of inter-State trade or commerce in terms of section 7(1) of the IGST Act, 2017 and is liable to issue IGST tax invoice in terms of section 20 of the IGST Act 2017 read with section 31 of the CG ..... X X X X Extracts X X X X X X X X Extracts X X X X
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