Case Law Details
Chief Commissioner of CGST Vs Safari Retreats Pvt. Ltd (Supreme Court of India)
Challenge to constitutional Section 17(5)(d) of the CGST Act, 2017 before Hon’ble Supreme Court – hearing begins on 29th September, 22
The issue of constitutional validity of clause (d) of sub-section (5) of Section 17 of the Central Goods and Services Tax Act, 2017, which does not allow input tax credit on immovable property, will be heard by the Hon’ble Supreme Court on 29th September’2022 in Special Leave Petition (Civil) No. 26696 of 2019 in the matter of Chief Commissioner of CGST & Ors. vs M/s Safari Retreats Pvt. Ltd. The matter has been kept on top of the board.
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 structure which can be erected, dismantled, transported to another site and again re-erected within no time. One of the issue 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.
I feel warehousing sector and other sectors who are going to be affected by 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.
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