Transfer of Leasehold Rights and GST on Noida Authority Allotted Land

In re Fena Private Limited (AAR Uttar Pradesh)

The Authority for Advance Ruling (AAR), Uttar Pradesh, examined the case of Fena Private Limited concerning the Goods and Services Tax (GST) implications on the transfer of leasehold rights of land allotted by the Noida Authority. The primary questions revolved around whether such a transfer constitutes a supply under Section 7 of the CGST Act, 2017, the GST liability on the transaction, and the eligibility of the transferee to claim input tax credit.

Detailed Analysis

1. Background and Questions Raised

Fena Private Limited entered into an agreement with M/s S.K. Food Equipments Pvt. Ltd. for transferring leasehold rights of land allotted by the Noida Authority for a consideration of Rs.6,60,00,000. The company sought clarity on whether this transaction falls within the definition of supply as per GST laws, whether GST is payable on the transaction, and the eligibility of the transferee for input tax credit.

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