Governmental authority status supports construction-service exemption, while pre-cutoff contract and stamp-duty compliance requires verification on re...
Automated Free Sale and Commerce Certificates enable paperless processing while retaining risk-based manual verification for selected exporter applica...
Employee stock-shortage penalties do not constitute consideration for services, preventing GST collection under Schedule II in employment relationship...
The Supreme Court interpreted clauses (c) and (d) of sub-section (5) of Section 17 of the Central Goods and Services Tax Act, 2017. Regarding clause (c), the Court held that there is no scope to give any meaning other than its plain and natural meaning, excluding works contract services from input tax credit (ITC). Regarding clause (d), the Court held that the expression "plant or machinery" cannot be given the same meaning as "plant and machinery" defined in the explanation to Section 17. The expression "plant or machinery" in clause (d) should be given its ordinary meaning, and whether a building qualifies as a plant depends on the business of the registered person and the role of the building in that business. If the construction of a building is essential for supplying services like renting or leasing, it could be considered a plant under clause (d). The writ petitions were rejected, subject to this interpretation of clause (d).
The Supreme Court interpreted clauses (c) and (d) of sub-section (5) of Section 17 of the Central Goods and Services Tax Act, 2017. Regarding clause (c), the Court held that there is no scope to give any meaning other than its plain and natural meaning, excluding works contract services from input tax credit (ITC). Regarding clause (d), the Court held that the expression "plant or machinery" cannot be given the same meaning as "plant and machinery" defined in the explanation to Section 17. The expression "plant or machinery" in clause (d) should be given its ordinary meaning, and whether a building qualifies as a plant depends on the business of the registered person and the role of the building in that business. If the construction of a building is essential for supplying services like renting or leasing, it could be considered a plant under clause (d). The writ petitions were rejected, subject to this interpretation of clause (d).
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