Case Law Details
Myrayash Hotels Pvt. Ltd. Vs Union of India (Supreme Court)
The plea challenges the constitutional validity of GST Levy on Lease/ Rental Payments.
The Supreme Court of India has asked the petitioner(s) to serve an advance copy to the Additional Solicitor General to seek instructions in a plea challenging constitutional validity of levy of GST on lease/ rent payments. Justice M.R. Shah and Justice B.V. Nagarathna, while hearing the matter, observed, “Let one advance copy be served on Shri N. Venkataraman, learned ASG, who may take the instructions in the matter and file the counter affidavit.
The plea states, “By deeming a lease of land to be “supply of service” and then taxing it, essentially the GST Act tax the land itself. There is no reason why income or yield of land should be allowed to be taxed under Entry 49 List II, but the use of land which produces that yield or income should fall outside Entry 49 List II. When GST is levied on lease of land, it is ultimately levied on the lease income which is yield of land itself. The lease income and the lease user are inextricably linked. One cannot say that the lease is separate from the lease income which is generated.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
Let one advance copy be served on Shri N. Venkataraman, learned ASG, who may take the instructions in the matter and file the counter affidavit.
Put up on 04.05.2022.
Author Bio
Sir,
The issue of levy of GST on Royalty/lease rental of mines, on minerals extracted from mines has been stayed by 3 High courts. Moreover, the issue has already been decided by Supreme Court in favour of assessee much earlier.
Refer details in the article published in the magazine (2022) 37 J.K.jain’s GST & VR Page R-55 to R-58.
CA Om Prakash Jain s/o J.K.Jain, Jaipur