The Supreme Court heard and listed the next hearing of the Case of M/s. Safari Retreats Private Limited & Ors. on 23rd August 2023 at 2:00 PM before the bench of Justice Abhay S. Oka and Justice Sanjay Karol. The apex court will determine the Goods and Services Tax (GST) implications of the immovable property in the next hearing.
The Civil Appeal was filed before the Supreme Court of India by the Chief Commissioner of Central Goods and Services Tax against the Company M/s Safari Retreats and Ors. in 16th October 2019.
M/s Safari Retreats involved in Real estate activities with own or leased property. It includes buying, selling, renting and operating of self-owned or leased real estate such as apartment building and dwellings, non-residential buildings, developing and subdividing real estate into lots etc. Also included are development and sale of land and cemetery lots, operating of apartment hotels and residential mobile home sites.
According to the official report from the Supreme Court, the case was scheduled for August 17th, 2023, in order to seek permission for submitting brief written submissions along with a compilation of case law.
The report mentioned that no additional documents related to this case have been submitted up to this point. It was also noted that neither party’s counsel has submitted their statement of the case thus far. However, this is not obligatory according to the revised Supreme Court Rules of 2013. The bench has scheduled the subsequent hearing for August 23rd.
The Assistant Solicitor General (ASG) contended that the legislation restricts credits when goods or services are employed for “on own account,” a term lacking precise definition. The ASG further contended that immovable assets like malls are not subject to GST, and utilizing credits from earlier stages prior to property construction for rental services conflicts with the GST structure.
Relying on the VKC Footsteps case, the ASG contended that credits cannot be solely granted based on economic reasoning. He emphasized that such credit assertions were also prohibited during the period preceding GST implementation, and there exists no inherent entitlement to claim such credits.
The 3 other respondents apart from M/s Safari Retreats in this case are:
Also read: Supreme Court to decide Restriction of GST ITC on Immovable Property, Issues Notice to Centre
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