Maharashtra GST Advance Ruling Withdrawal: Lfonds India Pvt. Ltd.
The Authority for Advance Ruling allowed the applicant to withdraw their request, meaning no decision was made on input tax credit eligibility.
- Ruling
- NO.GST-ARA- 85/2019-20/B-32, Mumbai, dt. 12.03.2020
- Authority
- Authority for Advance Ruling
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- The company asked about claiming input tax credit on expenses for a principal.
- The applicant requested to withdraw their application before a decision was reached.
- The Authority allowed the withdrawal, leaving the tax question unanswered.
In short
The company asked the Maharashtra Authority for Advance Ruling (AAR) whether they could claim input tax credit (ITC) on expenses paid on behalf of a principal. Before the authority could decide, the company asked to withdraw their request. Because the application was withdrawn, the authority did not provide any guidance on the tax issue.
What has changed
How it worked before
Businesses often look to advance rulings to understand if they can claim tax credits on expenses incurred for third parties.
What has changed
Nothing changed. Because the application was withdrawn, there is no new rule or interpretation from this order.
Who this affects
Businesses seeking clarity on whether they can claim input tax credit for expenses paid on behalf of a principal.
What you should do
Do not rely on this order for your own tax planning. An advance ruling only binds the specific company that asked for it and their local tax office. Since this case was withdrawn, it provides no legal guidance for other businesses.
If you do nothing
If you assume this order supports your tax position, you risk a tax audit or penalty. A tax officer is not required to follow a withdrawn application, and you could be held liable for unpaid taxes and interest if your claim is later found to be incorrect.
The terms explained
- Input Tax Credit
- The tax a business pays on its purchases that it can use to reduce the tax it owes on its own sales.
- Advance Ruling
- A written decision by tax authorities on how tax laws apply to a specific business transaction.
- Principal
- The main party or client for whom a business performs services or incurs expenses.
The ruling in detail
Authority for Advance Ruling
M/s. Lfonds India Pvt. Ltd.
NO.GST-ARA- 85/2019-20/B-32, Mumbai, dt. 12.03.2020 · Maharashtra
Questions before the authority
- Whether we can claim Input Tax Credit of GST charged by the Vendors on expenses specifically incurred by us on behalf of Principal, the claim for which have been denied/disallowed by the Insurance Company?
Facts
The applicant is engaged in the technical management of vessels and was appointed by Lfonds Ship management Pvt Ltd (Principal) to assist in managing a vessel named IDM Doodle. The applicant sought an advance ruling regarding the admissibility of input tax credit on certain expenses incurred on behalf of the Principal. During the proceedings, the applicant requested to voluntarily withdraw their application.
Ruling
The Authority for Advance Ruling allowed the applicant's request to withdraw the application voluntarily and unconditionally. Consequently, the application was disposed of without going into the merits or detailed facts of the case.
Reasoning
The applicant submitted a letter dated 24.02.2020 requesting to withdraw their subject application. The Authority exercised its discretion under the relevant provisions of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 to allow this **voluntary and unconditional withdrawal**. As the application was withdrawn, no ruling was provided on the merits of the input tax credit issue.
Provisions relied on
- Section 97 of the Central Goods and Services Tax Act, 2017
- Section 98 of the Central Goods and Services Tax Act, 2017
For the practitioner
This order provides no substantive guidance on the admissibility of input tax credit for expenses incurred on behalf of a principal. It serves only as a procedural record of the **withdrawal of the application** by the applicant. Practitioners should note that this order does not establish any precedent regarding the taxability or credit eligibility of such expenses.
Source
This is a summary prepared from the published order, which is a scanned document. It is a reading aid and not the authority: where the two differ, the order governs. Verify every provision against the original before relying on it.
Original order: https://www.gstcouncil.gov.in/sites/default/files/AAR/mah_aar_85_2019-20_b-32_12.03.2020_lipl.pdf
Legibility of the scan, as read: high.
Prepared 20-10-2026.
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