Dear sir,
My one of client have Factory shed situated at GIDC Area. The said shed alloted by GIDC in the year of 2007 for 99 years lease.My Client sold this factory shed and applicable transfer fees paid to GIDC Authority by purchaser on this transfer.Now, GST Authority ask to pay GST on this sale. so, my query as below :
1. As per allotment some area of land are without construction of shed on which GST applicable
GST Applicability on Sale of Factory Shed: Sale vs. Lease Debate Under SAC 997212, Taxable at 18% A client sold a factory shed located in a GIDC area, initially leased for 99 years, and paid the applicable transfer fees. The GST Authority has demanded GST on this sale, prompting a query about its applicability. Responses highlight that under-construction or semi-constructed sheds are taxable under GST. There is a debate on whether the transaction constitutes a sale or an assignment of lease rights. The transaction might fall under SAC 997212, taxable at 18%. Additionally, the classification of a 99-year lease as a sale or lease is under judicial review, suggesting tax payment under protest for potential refunds. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
