Safari Retreats Pvt. Ltd. v. Chief Commissioner of CGST

[vikash YADAV]

What is the present legal position regarding the judgment in Safari Retreats Pvt. Ltd. v. Chief Commissioner of CGST - 2024 (10) TMI 286 - Supreme Court? Specifically, whether taxpayers are still eligible to avail Input Tax Credit (ITC) on construction of immovable property used for renting or leasing services in view of the retrospective amendment to Section 17(5)(d) of the Central Goods and Services Tax Act, 2017 substituting the expression 'plant or machinery' with 'plant and machinery', which may have the effect of nullifying the Supreme Court's ruling

[Suresh Yadav]

Safari Retreats Pvt. Ltd. v. Chief Commissioner of CGST - 2024 (10) TMI 286 - Supreme Court

This Judgment has to be considered as Null& void after retrospective amendment to Section 17(5)(d) of the Central Goods and Services Tax Act, 2017

AI Summary

Input tax credit eligibility affected by retrospective substitution of plant and machinery, potentially limiting ITC on construction-related costs. The substitution of the phrase 'plant or machinery' with 'plant and machinery' by retrospective statutory amendment is said to reverse Safari Retreats, meaning costs of construction of immovable property used for renting or leasing services are now treated as falling within the blocked category and taxpayers may be precluded from claiming Input Tax Credit; taxpayers should reassess entitlement and the amendment's temporal application.