If the construction of a building is integral to providing services such as renting, it may fall under the “plant” and eligible for ITC: Supreme Court in Safari Retreats Case
In a significant ruling, the Hon’ble Supreme Court has accepted the assessee’s argument under Section 17(5)(d) of the CGST Act in the Safari Retreats case. The Court rejected the department’s contention, allowing the assessee to claim Input Tax Credit (ITC) on GST paid for building construction, where the building is used for taxable services like renting.
The Court held that if the construction of a building is integral to providing services such as renting, it may fall under the “plant” exception to Section 17(5)(d), which generally disallows ITC on construction material for immovable property. This ruling could have far-reaching implications for the real estate and rental sectors.
The copy of the order is as under:
