Safari Retreats case on GST Council table, SC verdict may be reversed

The SC judgment on the expression "plant or machinery" appears to defeat the intention of the GST Council, the law committee observed

In what could be a blow to real estate companies, the Goods and Services Tax (GST) Council in its meeting on Saturday is likely to take up the proposal to retrospectively amend the Central Goods and Services Tax (CGST) Act, thereby reversing the recent Supreme Court judgment in the Safari Retreats case. The top court had, in October, allowed input tax credit (ITC) claims on construction costs for rental properties.

 

The SC judgment, according to experts, could have an adverse impact on the exchequer, to the tune of at least Rs 10,000 crore, as the ruling was effective retroactively from