AAR Maharashtra Denies ITC on Pipeline, Rules Floating Unit is a ‘Factory’

In re H-Energy Gateway Pvt. Ltd (GST AAR Maharashtra) Maharashtra Authority for Advance Rulings (AAR) has ruled that H-Energy Gateway Pvt. Ltd. is not eligible to claim Input Tax Credit (ITC) on the goods and services used for constructing its “Tie-in pipeline.” In a significant interpretation, the authority held that the company’s Floating Storage and Regasification Unit (FSRU), a vessel, qualifies as “factory premises” under GST law, thereby excluding the connecting pipeline from the definition of eligible “plant and machinery.” The case was remanded...