Safari Retreats : The Long Journey – One small drafting error leading to years of litigation & cost

1 December 2018: Safari Retreats files a writ petition in Orissa High Court.

2 April 2019: Orissa High Court rules in favor of Safari Retreats.

3 November 2019: GST authorities appeal to the Supreme Court.

4 October 2024: Supreme Court rules in favor of Safari Retreats.

5 December 2024: GST Council considers a retrospective amendment to nullify the Supreme Court’s ruling.

The GST Council’s Take:

The Council has now stated that the term “Plant and Machinery” has been used in 11 places in the CGST Act, while “Plant or Machinery” appears only once-calling it a “clerical/drafting error.”

Fun Fact:

From December 2018 to December 2024 (a span of 6 years), 24 GST Council meetings were held, and this “clerical error” was never discussed-until the Supreme Court ruled in favor of the taxpayer.

Had the decision gone in favor of the Department, there likely would have been no talk of a clerical error or retrospective amendment.

Implications for Taxpayers:

Taxpayers who claimed GST credit based on the Supreme Court’s October 2024 decision will now need to reverse it in their December 2024 GSTR-3B filings.

One small drafting error has led to years of litigation, enormous costs, and significant time and effort for all parties involved.

This is the real beauty of law-a never-ending quest for clarity