GST on assignment of leasehold rights stayed, as the court noted a possible exclusion from scope of supply.

GST treatment of assignment of leasehold rights in land and buildings was noted as able, with reference to a Gujarat High Court view that such assignment is a transfer of benefits arising from immovable property and may fall outside the GST scope of supply. In the absence of any contrary view before the Bombay High Court, the matter was treated as requiring consideration along with connected petitions, and interim protection was granted. The show cause notice dated 13 November 2024 remains stayed pending further consideration.

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Issues: Whether GST can be levied on the assignment of leasehold rights in a plot of land, together with buildings constructed thereon, in favour of a third party for lump sum consideration, and whether the show cause notice should remain stayed pending further consideration.

Analysis: The petition raised a GST dispute on the taxability of assignment of leasehold rights. The order noted that a Division Bench of the Gujarat High Court had taken the view that such an assignment is a transfer of benefits arising out of immovable property and would not fall within the scope of supply under the GST framework. In view of that existing view and the absence of any contrary view placed before the Court, the matter was treated as requiring consideration in a similar pending group of petitions, and interim protection was granted.

Outcome: The adjudication of the show cause notice dated 13 November 2024 shall remain stayed, and the petition was directed to be listed with connected matters.

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