HC Directs Functionality Test to Determine Eligibility of ITC on Building Premises

SBS Schooling Faridkot Vs State of Punjab And Others (Punjab and Haryana High Court) In the case of SBS Schooling Faridkot vs. State of Punjab and Others, the petitioner challenged the constitutional validity of Sections 17(5)(c) and 17(5)(d) of the Central GST Act/Punjab GST Act, 2017. The Punjab and Haryana High Court referred to the Supreme Court’s decision in Chief Commissioner of Central Goods and Service Tax vs. Safari Retreats (P.) Ltd.. The Supreme Court upheld the validity of the provisions but introduced the “functionality test” to determine whether buildings, such as m...