GSTAT Rejects Department’s Tax Demand on GIDC Leasehold Rights

In Assistant Commissioner of CGST & Central Excise v. Kajalben Hiteshbhai Malaviya, the Tribunal considered the Department’s challenge to an order dropping GST demands on the transfer of leasehold rights in GIDC land to third parties for consideration. Relying on the Gujarat High Court’s ruling in Gujarat Chamber of Commerce and Industry v. Union of India, and noting that the Supreme Court had dismissed the Department’s challenges to the relevant High Court judgments, the Tribunal held that GST was not leviable. The Department’s appeal was dismissed.