Assignment of MIDC Land Leasehold Rights to Third Party for Lump Sum Payment Not Subject to GST
Case-Laws
GST
The HC ruled that assignment of leasehold rights in MIDC land along with buildings to a third party for lump sum consideration is not subject to GST. Following Gujarat HC's precedent in Gujarat Chambers of Commerce case, the court determined that such transactions constitute transfer of benefits arising from “immovable property,” with the assignee becoming the new lessee in place of the original allottee. The court held that Section 7(1)(a) of the GST Act read with clause 5(b) of Schedule II and clause 5 of Schedule III does not apply to such transactions, exempting them from GST under Section 9. The HC stayed adjudication of the Show Cause Notice dated November 13, 2024.
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