GST Council Nullifies SC Ruling on Safari Retreats, Shaking Up Real Estate ITC Claim

The GST Council has reversed a Supreme Court ruling related to Safari Retreats, disrupting real estate ITC claims. The Court had previously allowed the claim of Input Tax Credit (ITC) for the sale of real estate, but the Council has now nullified this decision, leading to confusion in the industry. Real estate developers and builders were banking on the Court’s ruling to claim input tax credits on their projects. With this reversal, the industry faces challenges in understanding the new guidelines for claiming ITC, raising concerns about tax implications on ongoing and future projects. Stakeholders are seeking clarity to avoid additional financial strain.