The Authority for Advance Ruling (AAR) in Rajasthan has ruled that Input Tax Credit (ITC) is eligible on GST paid for inward supply for fixing plant and machinery to earth by foundational or structural support towards making the outward supply of goods.

The AAR ruling was in response to a query from Uvve Glass Private Limited, a company that manufactures glass products. The company sought an advance ruling on whether it was eligible to claim ITC on GST paid for the inward supply of structural support for its plant and machinery.

The AAR held that the inward supply of structural support for the plant and machinery was an input service that was used by the company in making its outward supply of goods. Therefore, the company was eligible to claim ITC on the GST paid for the inward supply.

The AAR ruling is significant because it clarifies the scope of ITC for input services used in fixing plant and machinery to earth. The ruling provides much-needed certainty to businesses that incur GST on such input services.

Here are some key takeaways from the AAR ruling: -> ITC is eligible on GST paid for inward supply for fixing plant and machinery to earth by foundational or structural support towards making the outward supply of goods.

-> The inward supply of structural support for the plant and machinery is an input service that is used by the company in making its outward supply of goods. -> The AAR ruling provides much-needed certainty to businesses that incur GST on such input services.