The Hon’ble Supreme Court in Union of India & Ors. dismissed the batch of Special Leave Petitions filed by the Revenue against the judgment of the Hon’ble Gujarat High Court dated January 03, 2025, which had held that assignment/sale and transfer of leasehold rights of a plot of land allotted by the GIDC
The Hon’ble Supreme Court in the case of Assistant Commissioner (Anti Evasion) & Anr. dismissed the SLP filed by the Revenue against the judgment of the Hon’ble Bombay High Court
The Hon’ble Bombay High Court in the case of Hindustan Equipment Craft v. Assistant Commissioner of State Tax [Writ Petition No. 1257 of 2026, order dated February 27, 2026] held that assignment of leasehold rights to a third party constitutes transfer of benefits arising out of immovable property and does not qualify as a “supply of services” under the GST regime, thereby not liable to GST.
The Hon’ble High Court of Bombay in the case of Tokheim India (P.) Ltd. wherein the Assessee had challenged the adjudication on the ground that GST was not leviable on the assignment of leasehold rights and buildings to a third party.
OTU is conducting a Webinar on topic – GST implication on assignment of leasehold rights for land and building on 7th June, 2025 at 3 pm to 4 pm
In what could result in a Goods and Services Tax (GST) liability of approximately ₹141 crore for General Motors, the Maharashtra Authority for Advance Rulings (AAR) has held that 18% GST is applicable on the assignment or transfer of leasehold land by General Motors India to Hyundai Motor India Ltd (HMIL).
The Hon’ble Bombay High Court in the case of Panacea Biotec Limited Vs Union of India & Ors set aside the SCN issued and order passed relating to levy of GST on the transaction relating to assignment of leasehold rights by a lessee to third party for on account of non-consideration of reply at the time of passing of order.
In a landmark judgment, the Gujarat High Court has ruled goods and services tax (GST) does not apply to the transfer of leasehold rights to a third party in land granted by Gujarat Industrial Development Corporation (GIDC).
The fourth meeting of the Group of Ministers decided no further exemption in GST should be granted on long term lease of land by private entity and sector specific exemption such as for tourism purposes.
In the recent debate between realty companies and tax authorities around the demand for Goods and Services Tax (GST) on transfer of leasehold land, the latter may have a stronger case.
