GST DAILY – 501: Assignment of leasehold rights in land and building would not be subject to levy of GST: HC

THE HON’BLE GUJARAT HIGH COURT IN THE CASE OF BVM Pharma V/s Union of India, decided on 27-3-2025

👉 Issue:-

✔️ Can GST would be levied on assignment of leasehold rights in land and building?

👉 The Hon’ble High Court Judgement:-

✔️ Where assessee-lessee transferred leasehold rights of its industrial plot to third party-assignee by transfer order and thus, third party-assignee would now become lessee, assignment of leasehold rights of land and building by assessee would not be subject to levy of GST.

✔️ In Gujarat Chamber of Commerce and Industry v. Union of India 2025 it was held that provisions of section 7(1)(a) providing for scope of supply read with clause 5(b) of Schedule II and Clause 5 of Schedule III would not be applicable to such transaction of assignment of leasehold rights of land and building and same would not be subject to levy of GST.