After Shocks of the Safari Judgement

The Union Budget 2025 seeks to amend Section 17(5)(d) of the CGST Act to substitute the words “plant or machinery” with the words “plant and machinery” with effect from July 01, 2017. Once the Finance Bill becomes the Finance Act 2025, post Presidential Assent, and post a date where it is to be notified, the said enactment will bring in Retrospective amendment in order to read the “Plant or Machinery” with the words “Plant and Machinery”. This technically addresses the lacuna which was observed by the Honble Supreme Court, in the case of Chief Commissioner of CGST v. M/s. Safari Retreats Private Limited & Ors [Civil Appeal No. 2948 of 2023 dated October 03, 2024] which held that GST credit can’t be denied on “plant” in Section 17(5)(d) of the CGST Act.