{"id":4894,"date":"2025-07-16T17:06:50","date_gmt":"2025-07-16T11:36:50","guid":{"rendered":"https:\/\/www.centaxonline.com\/blog\/?p=4894"},"modified":"2025-07-16T17:06:50","modified_gmt":"2025-07-16T11:36:50","slug":"no-gst-on-assignment-of-leasehold-rights-in-immovable-property-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/no-gst-on-assignment-of-leasehold-rights-in-immovable-property-hc","title":{"rendered":"No GST on Assignment of Leasehold Rights in Immovable Property | HC"},"content":{"rendered":"<pre><strong>Case Details: <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/gst\/101010000000401002\/assignment-of-immovable-property-benefits-by-lessee-assignor-to-third-party-not-covered-under-supply-no-gst-hc\">Saurashtra Tin and Metal Industries Versus Union of India (2025) 32 Centax 163 (Guj.)<\/a><\/strong><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Bhargav D. Karia<\/strong> &amp; <strong>P. M. Raval<\/strong>, JJ.<\/li>\n<li><strong>S\/Shri Dhaval Shah<\/strong> &amp; <strong>Paresh V Sheth<\/strong> for the Petitioner.<\/li>\n<li><strong>Shri Pradip D Bhate<\/strong> for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>The petitioner, acting as lessee-assignor, was allotted an industrial plot by a state industrial corporation under a lease deed. The petitioner applied to the state industrial corporation for transfer of the said plot to a third party, which was approved. A deed of assignment was thereafter executed between the petitioner and the third party, under which the petitioner received consideration. The petitioner did not charge or recover GST on the consideration received under the deed of assignment. The jurisdictional officer contended that execution of the deed of assignment with the third party amounted to a service, and the consideration received was taxable value of supply of service under Entry No. 16 of <a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2011%2F2017-State%20Tax%20(Rate)&amp;itemType=AP\">Notification No. 11\/2017-State Tax (Rate)<\/a>, dated 30-06-2017, liable to GST at the applicable rate. The matter was accordingly placed before the Gujarat High Court.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Gujarat High Court held that the assignment, sale, or transfer of benefits arising out of immovable property by a lessee-assignor in favour of a third party-assignee, who would become lessee in place of the original allottee-lessee, would not fall within the scope of supply under section 7 read with section 9 of the CGST Act and Gujarat GST Act. It observed that the transaction involved only the transfer of leasehold rights originally held by the petitioner to the third party, and nothing more. The Court noted that the case was squarely covered by the decision in <a href=\"https:\/\/www.centaxonline.com\/search?searchData=2025%20(94)%20G.S.T.L.%20113&amp;itemType=AP\">Gujarat Chamber of Commerce and Industries v. UoI<\/a> 2025 (94) G.S.T.L. 113\/(2025) 26 Centax 150 (Guj.) and quashed the impugned order raising GST demand.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2025%20(97)%20G.S.T.L.%20125&amp;itemType=AP\">Alfa Tools (P.) Ltd. v. Union of India<\/a> \u2014 2025 (97) G.S.T.L. 125\/(2025) 28 Centax 287 (Guj.) \u2014 Referred [Para 8]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2025%20(94)%20G.S.T.L.%20113&amp;itemType=AP\">Gujarat Chamber of Commerce and Industry v. Union of India<\/a> \u2014 2025 (94) G.S.T.L. 113\/(2025) 26 Centax 150 (Guj.) \u2014 Referred [Para 8]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2025%20(95)%20G.S.T.L.%20369&amp;itemType=AP\">Kabir Instrument and Technology v. Union of India<\/a> \u2014 2025 (95) G.S.T.L. 369\/(2025) 27 Centax 41 (Guj.) \u2014 Referred [Para 8]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Saurashtra Tin and Metal Industries Versus Union of India (2025)&hellip;<\/p>\n","protected":false},"author":8,"featured_media":4901,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,60,189],"tags":[],"class_list":["post-4894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","category-news","category-gst-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>No GST on Assignment of Leasehold Rights in Immovable Property | HC<\/title>\n<meta name=\"description\" content=\"Gujarat HC holds transfer of immovable property benefits by lessee to third party not a &#039;supply&#039; under GST; 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