In Budget, the government changed a word, hand slipped tax credit… was relieved from SC, was snatched away from traders again

Lokesh Solanki, Indore. In the budget proposal, the government changed only one word under the special provision of GST Act and the relief in the pockets of those who rented a commercial building. This small change made silently has slipped the relief of tax credit.

In October last year, due to a decision of the Supreme Court, this relief taxpayers came to share. The Supreme Court had decided that the tax (GST) paid during the construction of commercial buildings could be taken further. The government and GST department still did not want to pay tax credit.

Safari retreat case was discussed across the country

• The court considered commercial buildings like a plant, which is constructed to rent. This decision became famous across the country as Safari Retreat Case.
• The government has changed the words to zero to relieve relief from retrospective effects in the law. In point 119 of the budget ie Finance Bill, the government has proposed this change in Claus (D) of Sub Section (5) of Section 17 of GST Act.
• According to this, the word plant or machinery was written in the relevant provision of GST Act, it will be read plant and machinery. That is, the government has changed the English R (OR) written in the Act to And (AND).
• The Supreme Court had decided on the petition of the hotel manufacturers called Safari Retreat in Odisha that at the time of construction of such buildings, from cement, sariya and other materials to labor, the GST concerned makes, further when GST on its rental earnings. If the liability comes, it will be able to take a credit for GST paid at the time of construction.
• The Supreme Court considered such commercial buildings like an industrial unit. This decision of the court was based on the sentences written in the GST Act. In the GST Act, the government wrote the plant R (or) machinery in many places.

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Taxpayer’s trust will decrease

According to Tax Advisor RS Goyal, before the Supreme Court, the Odisha High Court also gave a decision in favor of the Safari Retreat. This decision was considered as a milestone across the country. Due to this, the tax burden was reduced from the shoulders of the hired people by making commercial buildings, plug and play office and working space.

The GST department had refused to give any kind of input tax credit, while the government itself has been charging 18 percent GST on rent. The taxpayer had taken refuge in the court because if the building of the building is to be given GST, then the credit of GST paid on its construction should also be received.