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The Central Board of Indirect Taxes & Customs (CBIC) has notified October 1 as the date for bringing into force amendments in the CGST Act, enacted through the Finance Act 2025.
The CESTAT, Ahmedabad in the case of Kohler India Corporation Pvt. Ltd. remands matter where Commissioner erroneously applied Safari Retreats ratio under the CGST Act, without examining pari materia status of provisions under the Service tax provisions.
The recent dismissal by the Supreme Court of a review petition in Safari Retreats case will not impact the implementation of an amendment in CGST Act, a senior Government official has said.
Reaffirming taxpayers’ rights on input tax credit (ITC), the Supreme Court on 20 May dismissed a review petition filed by the revenue department in the Safari Retreats case, providing clear ground for taxpayers under the Goods and Services Tax (GST) regime.
The government has ‘nullified’ the Supreme Court order in the Safari Retreats case that allowed commercial real estate companies to claim input tax credit (ITC) on construction costs for their rental buildings.
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.
Webinar on 22.10.2024 on Safari Retreats – Hon’ble SC Verdict Analysis is scheduled at 2:30 pm
The government is considering filing a review petition against the Supreme Court’s verdict with regard to Safari Retreats that allows commercial real estate companies to claim input tax credit (ITC) on construction costs for their rental buildings. Sources familiar with the matter indicate this ruling could impact government revenue, resulting in a shortfall of nearly Rs 5,000 crore.
The Supreme Court on October 3 made a landmark ruling that allows property owners to claim input tax credit, or ITC, on construction costs for rental buildings.
The Hon’ble Supreme Court in the case of Chief Commissioner of Central Goods and Services & Ors. upheld the validity of Section 17(5)(c) and 17(5)(d) of the CGST Act, rejecting the constitutional challenge.
