Chief Commissioner Of Central Goods And ... vs M/S Safari Retreats Private Limited

The Supreme Court addressed the constitutional validity of clauses (c) and (d) of sub-section (5) of Section 17 of the Central Goods and Services Tax Act, 2017, which restrict Input Tax Credit (ITC) for construction services intended for letting out. The Court upheld the High Court's decision to read down Section 17(5)(d), affirming that the denial of ITC would frustrate the purpose of the CGST Act, thereby allowing the first respondent to claim ITC on GST paid for the construction of a shopping mall. The ruling reinforces the principle that tax provisions should not hinder the benefits intended for taxpayers under the GST framework.