A bench of the Gujarat High Court has stayed GST department notices regarding the imposition of GST on the transfer of leasehold rights over Gujarat Industrial Development Corporation (GIDC) land across the state.
The court’s decision follows a challenge to the issued notices. GIDC itself had previously filed a similar petition. The core issue revolves around the imposition of GST on industries that have transferred their leasehold rights of plots assigned to them by GIDC to third parties. The department deemed this transaction a service subject to GST and issued notices to the original allottees for service tax quantification.
In addition to the Gujarat Chamber of Commerce and Industry, four industry bodies have contested the department’s notices, while there are 400 such allottees in various GIDC estates across Gujarat. They could face substantial service tax payments if department proceeds with these notices.
Source from: https://www.ahmedabadmirror.com/gujarat-hc-stays-gst-notices-on-industries/81866008.html