The HC held that the assignment of leasehold rights by the petitioner constitutes a transfer of benefits arising from immovable property, which is excluded from the scope of supply under Section 7(1)(a) read with Schedule 2 and Schedule 3 of the State GST Act, 2017. Consequently, such a transaction is not subject to GST levy under Section 9. The court quashed and set aside the impugned order issued under Section 73, the Form GST DRC-07 dated 05.02.2025, and the show-cause notice FORM GST DRC-01 dated 26.07.2024. The petition was allowed, confirming that GST cannot be imposed on the assignment of leasehold rights in the circumstances presented.
The HC held that the assignment of leasehold rights by the petitioner constitutes a transfer of benefits arising from immovable property, which is excluded from the scope of supply under Section 7(1)(a) read with Schedule 2 and Schedule 3 of the State GST Act, 2017. Consequently, such a transaction is not subject to GST levy under Section 9. The court quashed and set aside the impugned order issued under Section 73, the Form GST DRC-07 dated 05.02.2025, and the show-cause notice FORM GST DRC-01 dated 26.07.2024. The petition was allowed, confirming that GST cannot be imposed on the assignment of leasehold rights in the circumstances presented.
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