Indirect Tax Alert : - Assignment of leasehold rights in industrial land not leviable to GST
The Gujarat High Court in Gujarat Chamber of Commerce and Industry and Ors. Vs. Union of India and Ors. [TS-03-HC(GUJ)-2025-GST] has held that the assignment of leasehold rights of the plot of land allotted by Gujarat Industrial Development Corporation (GIDC) and building constructed thereon by Lessee (Assignor) qua GIDC in favor of third-party (Assignee) would be considered as assignment/ sale /transfer of benefits arising out of ‘immovable property’ and hence, would be treated as an ‘immovable property’. Consequently, such assignment would not be leviable to GST.
We, at BDO in India have summarised the Gujarat High Court ruling. Hope you would find it timely and useful.