The Finance Bill, 2025 has reversed the decision of Supreme Court in the case of Safari Retreats Case by amending a clause (d) of sub-section (5) of section 17 of the Central Goods and Services Tax Act. 

Clause 119 of the Finance Bill, 2025 seeks to amend clause (d) of sub-section (5) of section 17 of the Central Goods and Services Tax Act so as to substitute the expression “plant or machinery with the expression “plant and machinery” to remove any ambiguity in interpretation for the purpose of availment of input tax credit in such cases.

It further seeks to insert an Explanation to clarify that the said amendment is made notwithstanding anything to the contrary contained in any judgment, decree or order of any court or any other authority.

This amendment shall take effect retrospectively from 1st day of July, 2017.