Supreme Court dismisses GST review plea in Safari Retreat case, upholds ITC on leased buildings

The Supreme Court has dismissed a review petition filed by the government in the Safari Retreat case concerning blocked credit under the Goods and Services Tax (GST). Experts say this could affect the implementation of an amendment to the CGST Act, which was introduced to override the Supreme Court’s earlier ruling.

“We have gone through the review petition and perused the Judgment and Order dated 3 October 2024 which has been sought to be reviewed. There is no error apparent on the record. Review Petition is dismissed,” a division bench of Justices Abhay S Oka and Sanjay Karol.

On October 3, 2024, the same bench ruled that if a building is constructed for supplying services such as renting or leasing out, it can be regarded as a plant, and input tax credit (ITC) under GST will be eligible. However, it rejected a constitutional validity challenge to blocked credit provisions in the GST law.