Assignment of Long-Term Leasehold Rights Not Subject to GST Under Section 9 of CGST Act
Case-Laws
GST
The HC quashed and set aside the show cause notice, ruling that assignment of long-term leasehold rights does not attract GST. Following Gujarat Chamber of Commerce precedent, the court determined that such assignment constitutes a transfer of benefits arising from immovable property rather than a taxable supply under the CGST Act. The deed of assignment represents a sale/transfer of leasehold rights for valuable consideration, placing the assignee in the position of lessee. As this transaction falls outside the scope of Section 7(1)(a) read with Schedule II Clause 5(b) and Schedule III Clause 5, it is not subject to GST under Section 9 of the Act.
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