ValkyaEditorial

Tagged “input-tax-credit”

4 articles on input-tax-credit.

Weekly Report

GST and indirect tax: May-June 2026 roundup

The May-June 2026 cycle in Indian GST and indirect-tax law has produced three threads running in parallel — the s.16(2)(c) constitutional ferment now sitting before the Supreme Court, the operational aftermath of the September 2025 rate-rationalisation in the High Courts, and the migration of anti-profiteering jurisdiction from the dissolved NAA to the GSTAT Principal Bench.

Valkya Editorial··12 min
Landmark JudgmentSupreme Court of India

Safari Retreats v. Union of India: how the Supreme Court read 'plant or machinery' to permit ITC on commercial leasing buildings — and how the Finance Act 2025 retrospectively undid the reading

On 3 October 2024, a two-judge bench of Justices Abhay S. Oka and Sanjay Karol held that the textual choice of 'plant or machinery' — rather than 'plant and machinery' — in *Section 17(5)(d) of the CGST Act, 2017* was deliberate, and that a building could qualify as 'plant' for input-tax-credit purposes if the functionality test was satisfied. The Finance Act 2025 substituted 'and' for 'or' with retrospective effect from 1 July 2017, nullifying the reading; the review petition was dismissed on 20 May 2025; constitutional challenges to the retrospective amendment are now mounting in the High Courts. A digest of the holding, the legislative reversal, and the live constitutional terrain.

Valkya Editorial··15 min