The GSTAT, Bengaluru Bench in M/s Flora Kingdom Farm Resort v. Commissioner of Commercial Taxes [APL/05/BUR/2026 dated September 30, 2026] dismissed the appeal of the Assessee and sustained the demand of tax, interest and penalty on Input Tax Credit (“ITC”) availed on goods and services used for construction of a resort, and held that a resort building cannot be “plant and machinery” for any period from July 01, 2017, that the functionality test laid down in Safari Retreats was never available to a hotel or resort building, and that a building which serves as the setting of the taxpayer’s own business is constructed “on his own account”.
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