Assignment of Leasehold Rights as Transfer of Immovable Property Not Liable to GST

Last updated: 22 May 2026

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The Bombay High Court has ruled that assigning leasehold rights to a third party is considered a transfer of immovable property, not a supply of services subject to GST. The court found that the transaction extinguished the original leaseholder's rights and did not have a nexus with their business operations, aligning with previous rulings that such assignments are not taxable under the GST regime.

Court :
Bombay High Court

Brief :
The Hon’ble Bombay High Court in the case of Hindustan Equipment Craft v. Assistant Commissioner of State Tax [Writ Petition No. 1257 of 2026, order dated February 27, 2026] held that assignment of leasehold rights to a third party constitutes transfer of benefits arising out of immovable property and does not qualify as a “supply of services” under the GST regime, thereby not liable to GST.

Citation :
Writ Petition No. 1257 of 2026, order dated February 27, 2026

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1 Year PLAN - Rs.~~1999~~

1799

(Excl. of GST ₹323)

2 Years PLAN - Rs.~~3499~~

3149

(Excl. of GST ₹566)

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3 Years PLAN - Rs.~~4999~~

4499

(Excl. of GST ₹809)

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Attached File : 671907_5988_hindustan_equipment_craft.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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