Supreme Court To Determine If Leasehold Rights Assignment Qualifies As GST-Taxable Supply

The Supreme Court is set to examine whether the assignment of leasehold rights constitutes a “transfer of land” or a “supply of service” under the Goods and Services Tax (GST) regime. 

A Division Bench will hear the Centre’s appeal against the Gujarat High Court’s judgment, which held that the assignment of leasehold rights in land and buildings does not amount to a taxable supply under GST.

The High Court quashed the demand, interest, and penalties imposed on the petitioner, holding the transaction to be a business reorganisation involving immovable property.

The Supreme Court directed that the appeal be tagged with a similar pending case. 

[Union Of India & Anr. v. M/S Life Sciences Chemicals & Anr.]