In re R.V Hydraulic Services (GST AAR Andhra Pradesh)
In a recent advance ruling, the Andhra Pradesh GST Authority for Advance Ruling (GST AAR) denied Input Tax Credit (ITC) on Integrated Goods and Services Tax (IGST) to M/s RV Hydraulic Services. The key reason cited was that the Bill of Entry for the imported machinery was not in the name of the applicant.
Case Overview
M/s RV Hydraulic Services, based in Visakhapatnam, Andhra Pradesh, specializes in steel plate processing services and operates under GSTIN 37DZIPR3608R1ZG. The company imported a Davi Full Hydraulic Plate Roll (Model MCB F30) through Promau SRL, Italy, for a total cost of €80,000.
The machinery was initially imported to India for exhibition purposes at the IMTEX 2024 event in Bangalore under a Bill of Entry made out to the supplier, Promau SRL. Post-exhibition, M/s RV Hydraulic Services finalized the purchase and paid customs duties, including IGST amounting to ₹14,23,964, through a TR-6 challan. However, the Bill of Entry remained in the name of Promau SRL.
Applicant’s Arguments
The applicant contended that:
- They had paid the applicable IGST and customs duties for the imported machinery.
- The machinery was procured for business purposes and was installed at their premises.
- As per Section 16 of the CGST Act, 2017, they were eligible to claim ITC since the tax had been paid.
The applicant requested clarification on whether they could claim IGST ITC despite the Bill of Entry not being in their name.
