Summary
- On 21 July 2026, the Supreme Court dismissed the Revenue’s batch of SLPs in Union of India v. Gujarat Chamber of Commerce & Industry (SLP(C) Diary No. 33270/2025), upholding the Gujarat High Court’s 3 January 2025 ruling. [a2ztaxcorp.net], [mondaq.com]
- The assignment of long-term GIDC leasehold rights in industrial plots (plus buildings) for lump-sum consideration is a transfer of immovable property outside the scope of “supply,” so no 18% GST applies; pending demands are effectively quashed. [taxo.online], [taxguru.in]
- The Court declined to rule on standalone transfers of development rights without the underlying land, leaving that larger question of law open. [a2ztaxcorp.net], [taxguru.in]
Article
India’s most significant recent GST-vs-immovable-property dispute has reached finality. The Supreme Court bench of Justices P.S. Narasimha and Alok Aradhe dismissed the Revenue’s Special Leave Petitions on 21 July 2026, noting an identical SLP had already been rejected on 22 May 2026. The underlying Gujarat High Court judgment held that when a lessee-assignor transfers absolute leasehold rights in a GIDC industrial plot—together with buildings—for lump-sum consideration and GIDC’s consent, the assignee steps into the lessee’s shoes and the transaction constitutes a transfer of immovable property under Section 7 read with Schedule III of the CGST Act. Accordingly, the 18% GST the Department sought under “other miscellaneous services” cannot be levied. Importantly, the Court kept open the taxability of a standalone transfer of development rights without the underlying land.
Sources
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