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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
PRANAV TRIVEDI, BHARGAV D.KARIA
Technofy Digital Private Limited – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. challenge on the validity of gst order. (Para 1) |
| 2. factual background of the lease and sub-lease. (Para 2) |
| 3. parties agree on prior case relevance. (Para 3 , 4) |
| 4. analysis on transfer of leasehold rights as immovable property. (Para 5) |
| 5. established ratio on leasehold assignment treatment. (Para 6) |
| 6. final order quashing previous notices. (Para 7) |
ORDER :
PRANAV TRIVEDI, J.
1. The present petition preferred under Articles 226 and 227 of the Constitution of India assails the correctness and validity of order dated 27.02.2025 rendered under Sec.73 of the State Goods & Service Tax Act, 2017 (hereinafter referred to as ‘the Act’ for short), in FORM GST DRC-07 inter alia considering the assignment of lease deed by the petitioner in favour of various entities. The respondent has considered this as supply of service under Sec.7(1)(a)of the Act and classified under heading 9972 of classification scheme for services under GST.
2. The brief facts leading to filing of the present petition is that Gujarat Industrial Development Corporation (hereinafter referred to as ‘GIDC’) which is established under the Gujarat Industrial Development Act, 1962, acts as a nodal agency of Govern
The assignment and sale of leasehold rights are classified as transfer of immovable property, not taxable as supply of services under GST.
Transfer of leasehold rights constitutes transfer of immovable property and is not subject to GST, as clarified under the State Goods and Service Tax Act, 2017.
Transfer of leasehold rights constitutes a sale of immovable property and is not considered a supply of services under the GST Act.
The assignment of leasehold rights under the GST regime is deemed a transfer of immovable property, exempt from GST, contradicting the previous classification as a supply of service.
The assignment of leasehold rights does not qualify as a supply of services under the Central Goods and Services Tax Act, 2017 and is thus not subject to GST.
The assignment of leasehold rights does not constitute a supply under GST, and any notice issued beyond the limitation period is illegal.
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