Transfer of Leasehold Rights Not Subject to GST, Akin to Sale of Land: Gujarat HC

Dhiraj Can Co. Pvt. Ltd. Vs Union of India & Ors. (Gujarat High Court) The Gujarat High Court, in a significant ruling, has reiterated that the transfer of leasehold rights is not a taxable supply under the Goods and Services Tax (GST) regime, as it is akin to the sale of land, which is explicitly excluded under Schedule III of the GST Act. This judgment was delivered in the case of Background of the Case The petitioner, Dhiraj Can Co. Pvt. Ltd., was allotted an industrial plot by the Gujarat Industrial Development Corporation (GIDC). In 2020, the petitioner applied to GIDC to transfer the...