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No GST on Transfer of Leasehold Rights: Gujarat High Court
Case Law Details
- Case Name
- Gujarat Chamber of Commerce And Industry & Ors. Vs Union of India & Ors. (Gujarat High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Gujarat High Court
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Gujarat Chamber of Commerce And Industry & Ors. Vs Union of India & Ors. (Gujarat High Court)
The Gujarat High Court has delivered a significant judgment, ruling that the transfer or assignment of leasehold rights does not attract Goods and Services Tax (GST). The court held that such a transfer constitutes the sale of immovable property, which falls outside the scope of GST as per the provisions of the GST Act, 2017.
This ruling came in the case of Gujarat Chamber of Commerce and Industry & Ors. Vs Union of India & Ors., where the petitioners contended that th...
Author Info
We have paid GST along with interest on the transfer of lease land, as per the demand raised by the GST Department. However, considering the circumstances surrounding the transaction, we believe there may be grounds for reconsideration. We would like to know if it’s possible to file an appeal and request a reversal of the amount paid, including the interest. Any guidance on this process would be greatly appreciated.
Sir,
Refer my article titled, ‘Royalty on Mines’─ Govt. has No authority to levy GST, pub. on Taxguru website on 21.12.2024.mentioning the ratio decidendi of 9 Judges bench of Supreme Court (8:1) in the case of, Mineral Area Development Authority v. Steel Authority of India (2024) 42 J.K.Jain’s GST & VR 70 (SC), wherein the Hon’ble Supreme Court held as under; ii) Upon payment of Royalty, a mineral excavated from the Leased Mine is a benefit arising out of land. iii) According to S.3(26), General Clauses Act, 1897, immoveable property is defined to include land, benefits to arise out of land. and as such Royalty on mines is an “Immovable property” not liable to GST. Refer my analysis .on Supreme Court case in Mineral Area Development Authority v. Steel Authority of India (2024) 42 J.K.Jain’s GST & VR 70 (SC) in this regard. CA Om PrakashJain s/o J.K.Jain, Jaipur
TEl No. 9414300730/9462749040/0141-3584043