Assignment of Leasehold Rights in Industrial Plots Is Transfer of Property Benefits, Not Supply of Services Under GST Section 7(1)(a)

Assignment of Leasehold Rights in Industrial Plots Is Transfer of Property Benefits, Not Supply of Services Under GST Section 7(1)(a)Case-LawsGSTThe HC held that the assignment by sale and transfer of leasehold rights of industrial plots allotted by a gov

Assignment of Leasehold Rights in Industrial Plots Is Transfer of Property Benefits, Not Supply of Services Under GST Section 7(1)(a)
Case-Laws
GST
The HC held that the assignment by sale and transfer of leasehold rights of industrial plots allotted by a government agency constitutes transfer of benefits arising from immovable property and not supply of services. Consequently, Section 7(1)(a) of the Act, along with Clause 5(b) of Schedule 2 and Clause 5 of Schedule 3, does not apply, and such transactions are not subject to GST levy under Section 9. The Court quashed and set aside the impugned Order-in-Original dated 31.12.2024 issued under Section 74 in Form GST DRC-07, thereby allowing the petition. This decision aligns with prior rulings, including the setting aside of a show cause notice dated 03.08.2024, confirming that the transaction falls outside the ambit of taxable supply under GST law.
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