In re RHI Magnesita India Limited (GST AAAR Haryana)
The appeal arose from an Advance Ruling issued by the Haryana Authority for Advance Ruling (AAR), which had held that input tax credit (ITC) was not available on services procured in connection with a Qualified Institutional Placement (QIP). The appellant challenged this finding before the Haryana Appellate Authority for Advance Ruling (AAAR).
The appellant, a registered taxpayer engaged in the manufacturing and marketing of specialty refractory products, had undertaken a Qualified Institutional Placement (QIP) in accordance with the applicable securities regulations. The QIP mechanism enabled listed companies to issue equity shares or other eligible instruments to qualified institutional buyers.
For executing the QIP, the appellant appointed HSBC Securities and Capital Markets (India) Private Limited as the Book Running Lead Manager. Under the agreement, HSBC was responsible for various services connected with the QIP process. These included providing advisory guidance on the timing, structure, and strategy of the offering; assisting in the preparation of offer documents and related materials; identifying and procuring investors; coordinating with legal and other professional advisors; organizing meetings with institutional investors; supporting applications before stock exchanges and regulatory authorities; preparing reports and information for submission to authorities; and handling placement and post-placement activities.
