No GST Levy on Assignment of Leasehold Rights of Industrial Plots as Supreme Court Dismisses Revenue's SLPs

Last updated: 29 July 2026

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Quick Summary

The Supreme Court has dismissed the Revenue's appeals, upholding the Gujarat High Court's decision that the assignment of leasehold rights for industrial plots, along with constructed buildings, is a transfer of immovable property and therefore not subject to GST. This ruling provides certainty for businesses transferring such rights. However, the Supreme Court intentionally left open the question of GST applicability on standalone transfers of development rights.

Court :
Supreme Court of India

Brief :
The Hon’ble Supreme Court in Union of India & Ors. v. Gujarat Chamber of Commerce and Industry & Ors. [SLP (C) Diary No. 33270 of 2025 dated July 21, 2026] dismissed the batch of Special Leave Petitions filed by the Revenue against the judgment of the Hon’ble Gujarat High Court dated January 03, 2025, which had held that assignment/sale and transfer of leasehold rights of a plot of land allotted by the Gujarat Industrial Development Corporation ( “GIDC” ) along with the buildings constructed thereon, by the lessee-assignor in favour of a third-party assignee for a lump-sum consideration, is a transfer of immovable property and would not be subject to levy of GST. The Hon’ble Supreme Court, while dismissing the SLPs, declined the Revenue’s request to clarify the taxability of a standalone transfer of development rights without transfer of the underlying land, thereby keeping the larger question of law open.

Citation :
SLP (C) Diary No. 33270 of 2025 dated July 21, 2026

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