Taxability of surrender of tenancy rights

[Prateek Jaju]

A religious trust, landowner, has rented its residential property to an individual for long term lease basis (widely known as pagdi system).

Now, the tenant is selling its tenancy rights to another individual.

As per the agreement, the new buyer will be transferring half amount to landowner and half amount to old tenant.

Will the receipt in the hand of landowner will attract GST ?

AI Summary

Transfer of tenancy rights: premium received for assignment or surrender is taxable service; residential rent remains exempt.
Payment characterised as tenancy premium for transfer or surrender of tenancy rights is a taxable supply treated as real estate services, whereas renting a residential dwelling for residential use is exempt; an outgoing tenant's surrender of tenancy rights for consideration is a taxable service, and a landowner's receipt as part of a tenancy premium payable on transfer remains taxable.