In re Chowgule and Company Private Limited (GST AAAR Goa)
In the case of “In re Chowgule and Company Private Limited,” the GST Appellate Authority for Advance Ruling (AAAR) Goa rendered a decision under Section 101 of the Central Goods and Services Tax Act, 2017 and the Goa Goods and Services Tax Act, 2017. The ruling addresses critical issues regarding the applicability of Integrated Goods and Services Tax (IGST) on imported iron ore, the eligibility for input tax credit (ITC), and the refund of unutilized ITC on the export of services.
Background of the Case
M/s Chowgule and Company Private Limited (hereinafter referred to as “the appellant”) filed an appeal against the Advance Ruling No. GOA/GAAR/11 of 2018-19/514 dated June 3, 2019. The original ruling by the Goa Authority for Advance Ruling (AAR) addressed four key questions:
1. Applicability of IGST at 5% on the import of iron ore for conversion into pellets and subsequent export.
2. Liability of the appellant to pay IGST under their GSTIN.
3. Eligibility to avail input tax credit (ITC) for the IGST paid.
4. Eligibility for a refund of unutilized ITC on the export of services.
The AAR ruled that the appellant was liable to pay IGST on the import of iron ore, eligible to avail ITC, but not eligible for a refund of unutilized ITC on the export of services. The appellant contested these findings, particularly the denial of the ITC refund.
