SLP against the constitutional validity of Section 17(5)(d)  of the CGST Act, 2017 on shopping mall, hotels, warehousing industry filed before the Hon’ble Supreme Court

 

The Special Leave Petition (Civil) No. 26696 of 2019 in the matter of Chief Commissioner of CGST & Ors. vs M/s Safari Retreats Pvt. Ltd has been kept on top of the board.

It may be noted that the Section 17(5)(d)  of the CGST Act, 2017 does not allow input tax credit (ITC) on immovable property.

The aforesaid SLP is in the context of a shopping mall but the judgment would have a direct bearing on the rights or interests of the warehousing industry, hotels etc. also as they will be affected by the operation and interpretation of Section 17(5)(d) of the CGST Act, 2017.

In this context it would be relevant to point out that the construction methodology of warehousing industry is different from shopping malls as warehouses these days are generally constructed by procuring prefabricated steel structures which can be erected, dismantled, transported to another site and re-erected within no time. One of the issues which needs to be decided in the context of interpretation of Section 17(5)(d) of the CGST Act, 2017 is whether a warehouse constructed by prefabricated steel structure is an immovable property. As an interested party, the warehousing sector and other sectors who may also be affected by the interpretation of Section 17(5)(d) of the CGST Act, 2017 should file intervention application/Writ petition under Article 32 before the Hon’ble Supreme Court.

The copy of the SLP order fixing the date is as under:

 

SLP against the constitutional validity of Section 17(5)(d) of the CGST Act, 2017 on shopping mall, hotels, warehousing industry filed before the Hon'ble Supreme Court