Long-term leasehold-rights assignment is outside taxable supply, so GST does not apply and recovery action was quashed.

Assignment by sale and transfer of long-term leasehold rights in land and building transfers the benefits arising from immovable property to the assignee, who replaces the existing lessee. The notes state that this transaction falls outside taxable supply under the GST framework, including Section 7(1)(a), Schedule II and Schedule III, so GST under Section 9 does not apply. On that basis, the action initiated under Section 73 was quashed, consistent with an earlier binding decision whose challenge before the Supreme Court had been dismissed.

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Issues: Whether assignment by sale and transfer of long-term leasehold rights in land and building is liable to GST.

Analysis: The assignment transfers the benefits arising from immovable property from the existing lessee to the assignee, who replaces the original lessee. Such a transaction falls outside the scope of taxable supply under Section 7(1)(a), Schedule II and Schedule III; consequently, GST under Section 9 is not attracted. The challenge was covered by the earlier binding decision, whose challenge before the Supreme Court had been dismissed.

Conclusion: Assignment of long-term leasehold rights in land and building is not liable to GST; the action under Section 73 was quashed.

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