GST APPLICABLE ON SALES OF FACTORY SHED

[SHAILESH VYAS]

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

AI Summary

Assignment of lease taxable; GST may apply to transfers of long-term lease rights, pay under protest to preserve refund claims.
Assignment of 99 year lease rights in a factory shed is treated as a taxable supply and may attract GST, whereas sale of a completed building can be excluded under Schedule III. Under construction or semi constructed sheds are taxable as services. Whether a very long term lease amounts to a sale remains judicially unsettled; payment of tax under protest is advised to preserve refund claims, noting that shifting the tax burden to the purchaser can prevent refund recovery.