GST DAILY – 471 : SCN to be set aside as assignment of leasehold rights in industrial plot is transfer of immovable property and not supply under section 7(1)(a): HC

THE HON’BLE GUJARAT HIGH COURT IN THE CASE OF Alfa Tools Pvt. Ltd. V/s Union of India, decided on 6-3-2025

 👉 Issue:-

✔️ Is assignment of leasehold rights in industrial plot is transfer of immovable property or supply of service?

👉 The Hon’ble High Court Judgement:-

✔️ Assignment by sale and transfer of leasehold rights of land allotted by GIDC, in favour of third party-assignee for a consideration, shall be assignment/sale/transfer of benefits arising out of “immovable property” by lessee-assignor, provisions of section 7(1)(a) of GST Act read with clause 5(b) of Schedule II and Clause 5 of Schedule III would not be applicable to such transaction and not be subject to levy of GST under section 9 of GST Act.

Section 9 read with section 7(1)(a) of Central Goods and Services Tax Act, 2017