AAR denies GST ITC on Imported Parts Where Foreign Supplier Paid Tax

In re Enerzi Microwave Systems P Ltd (GST AAR Gujarat) A Gujarat-based company providing warranty services for a German manufacturer has been denied Input Tax Credit (ITC) on Integrated Goods and Services Tax (IGST) paid by the foreign supplier on imported spare parts. The Authority for Advance Ruling (AAR), Gujarat, held that the Indian company was not eligible for the credit as the IGST was not borne by them, and the value of the imported parts was not included in their taxable outward supply of warranty services. The applicant, M/s. Enerzi Microwave Systems P Ltd., registered in Surat, is t...