HC Rules GST Not Applicable To Transfer Of GIDC Plot Leases

Quashes GST notices to 3rd-party allottees, refuses stay; state to lose Rs 8Kcr revenue

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A bench of the Gujarat High Court on Thursday quashed notices issued by the GST department that sought to recover tax on the transfer of GIDC plots to third parties from their original allottees. The court held that GST is not applicable on such transactions and also rejected a government plea to stay the order so it could approach the Supreme Court.

Notices Issued to 500 industries

Sources indicate that the GST department had issued notices to 500 industries for the recovery of Rs 5,500 crore, including the original amount plus interest and penalty. The government had protested the petition, claiming it would incur a loss of a whopping Rs 8,000 crore in GST revenue. Now, the government is preparing to file an appeal before the Supreme Court.