GST Not Applicable on Pre-GST Lease Cancellation: AAR Kerala

In re Indian Institute of Information Technology And Management (GST AAR Kerala) Kerala Authority for Advance Ruling (AAR) considered whether the cancellation of lease agreements signed before the GST regime constitutes a “supply” under the CGST Act. The applicant, Indian Institute of Information Technology Management-Kerala (IIITMK), had entered into two long-term lease agreements with Technopark—one in 2009 and another in 2011—for land parcels to construct campus buildings. Both agreements were executed in the pre-GST era, and lease amounts were capitalised and amortised in t...