Golden Star Technology Inc (GST)’s Post

Supreme Court’s Verdict on Safari Retreats Pvt Ltd Case Validates Our Stand on ITC: A Cautionary Approach Still Required The recent Supreme Court ruling in the Safari Retreats Pvt Ltd case has brought significant clarity to the complex issue of Input Tax Credit (ITC) on construction services. The Court allowed ITC on the construction of malls, where the building is used for taxable output supplies like renting out space, which echoes a long-debated point within the industry. Interestingly, we provided a similar opinion around five years ago, highlighting that ITC should logically be available when construction is used for taxable outward supplies. This ruling validates our view, proving that the legal landscape has finally caught up. However, while this decision is encouraging, it is critical to remain cautious when claiming ITC in such scenarios. Businesses should continue to assess the specific facts of each case and carefully weigh the risks of potential disallowances. It’s essential to consult professionals to ensure that your ITC claims align with the evolving legal framework. #GST #InputTaxCredit #SupremeCourt #TaxLaw #SafariRetreats #GSTLawSimplified #PKR #KPMC #VTS #NTN #GSTweeklyupdates #PKR #ICAI #IndirectTaxCommittee #GSTManthan #GSTCompliance #IndirectTax #TaxLaw #FinanceProfessionals #TaxUpdates #TaxConsulting #TaxReforms #BusinessLaw #TaxKnowledge #IndianTaxSystem #FiscalPolicy #TaxSimplified #TaxEducation #ProfessionalDevelopment #LegalUpdates #RegulatoryCompliance Value Tech Services (VTS Infosoft Pvt Ltd)

SC to pronounce judgment in Safari Retreats on Oct. 3 SC set to pronounce judgment in Safari Retreats on Oct. 3; Case deals with ‘blocked credit’ provisions in GST law and its constitutionality; Judgment potentially the most significant in GST law after Mohit Minerals; The crux of the matter revolves around interplay of Section 16 and 17(5) with respect to eligibility of ITC under GST on immovable property (mall); Before the SC, SLP was filed by Revenue challenging Orissa HC judgment which read down Section 17(5)(d) of CGST Act and extended credit on input materials/services used for construction of shopping malls meant for letting out to tenants for commercial purposes. Source : Taxsutra #GST #GSTLitigation #GSTUpdates #GSTCompliances #GSTNews

Exciting changes in SEZ regulations pave the way for a brighter future! The recent notification allowing partial operation as DTAs brings fresh possibilities for developers and tenants alike. A win-win for all in the evolving landscape of commercial real estate. Read more #ETInsights #DTAs #SEZ #Talent #RealEstate #Development #Future Raj Ramachandran

The Cycle to Work scheme allows employers to provide bicycles and cyclists’ safety equipment to employees as a tax-free benefit. The scheme must be offered to all employees and the bike must be used mainly for qualifying journeys i.e., between home and work. However, private use of the bike is also allowed. Where the scheme conditions are satisfied employees can benefit from a significant tax and National Insurance Contributions (NICs) exemption. In addition, there is no employer liability to pay Class 1A NICs. #TaxFreeBikes #EmployeePerks

🚨 Supreme Court's Landmark Verdict in Safari Retreats: Essentiality/Functionality Test for Buildings as 'Plant' under GST 🚨 The Supreme Court has pronounced its much-awaited judgment in Safari Retreats, providing critical clarity on the applicability of Section 17(5) of the GST Act. Key highlights: ✅ Constitutional Validity Upheld: The Court rejected the challenge to the constitutional validity of clauses (c) and (d) of Section 17(5). ✅ Differentiation in 'Plant' Definition: The expression "plant or machinery" under Section 17(5)(d) cannot be given the same meaning as explained in other contexts of the GST Act. The interpretation is specific and contextual. ✅ Essentiality/Functionality Test: Whether a building (such as a mall, warehouse, etc.) can be classified as a plant under Section 17(5)(d) is a factual question that hinges on the role the building plays in the registered person’s business. The functionality test must be applied to determine the building’s role in facilitating business activities. ✅ Application to Renting/Leasing Businesses: Buildings used for providing services like renting or leasing (as per Schedule II) could be classified as a plant, but the test must be applied case-by-case. ✅ Remand of Cases: Matters previously decided by High Courts (where the provision was read down) are remanded for reconsideration based on this judgment. This ruling establishes a vital precedent, especially for businesses operating malls, warehouses, or other service-providing buildings, where the essentiality and functionality of the building to the business will be the determining factor for tax treatment. #GST #TaxLaw #SupremeCourtVerdict #SafariRetreats #Section17 #PlantClassification

Honourable Supreme Court in a landmark judgement in the case of Safari Retreats has upheld constitutional validity of Input tax restriction for goods and services used for construction or works contract for immovable property. It has further held that ITC can be availed on goods and services used for construction of immovable properties such as malls and warehouses if they are used for further lease, rent and if they satisfy the term ‘plant’ based on functionality test. The functionality test has to be determined on facts of each case. This ruling is extremely significant for real estate, warehouse and infrastructure sectors. The ruling appears to favour mall, warehouse, commercial property owners wanting to lease their assets rather than use it for their own business purposes. At the same time, if factory building is constructed to manufacture goods or render services therein, ITC may not be allowed. Companies will have to do a cost benefit analysis to arrive at conclusion whether to lease the properties or sell/use them for their own purposes.

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. Class 1A NICs are also due on charge on termination awards above a £30,000 threshold that have not already been subjected to Class 1 NICs deductions. There’s no employee contribution payable for Class 1A NICs. #NIC #Class1aNIC

Class 1A NICs are paid by employers in respect of most benefits in kind provided to employees such as a company car. Class 1A NICs are also due on charge on termination awards above a £30,000 threshold that have not already been subjected to Class 1 NICs deductions. There’s no employee contribution payable for Class 1A NICs. #NIC #Class1aNIC

🌟 Great news for Danish Entrepreneurs! 🌟 The Danish government is rolling out the red carpet for entrepreneurs with new initiatives! Here are some highlights: #1: Goodbye 15.4% dividend tax on unlisted portfolio shares! #2: Capital requirement for private limited companies lowered to DKK 20,000. 🏢 #3: Improved parental leave benefits for entrepreneurs. 👶 #4: Increased tax credit limit to DKK 7.7 million (deficit of DKK 35 million). 💸 Read more about the new entrepreneurial opportunities in link below #Deloitte #DeloitteFastGrowingCompanies

Well done Gratte Brothers Group! It's great to see good news like this, especially when it's one of our customers! London-based M&E specialist, Gratte Brothers, saw extraordinary growth in 2023, despite the challenges, and increased their operating profit while maintaining financial stability. Read the full article here >> https://lnkd.in/gX4tHpnX #Construction #FinancialStability #BusinessGrowth