Assignment Of GIDC Leasehold Rights Is Transfer Of Immovable Property, Not Taxable Under GST: Gujarat HC In Jubilee Engineers

The Gujarat High Court has quashed a show cause notice under Section 74 demanding GST on the assignment of GIDC leasehold rights for Rs. 6,48,00,000, following its established ruling in Gujarat Chamber of Commerce, Industries & Ors. v. Union of India & Ors. [SCA No. 11345/2023].

The petitioner had been allotted a plot by GIDC on a 99-year lease and subsequently assigned the leasehold rights to a third party. The SCN treated the assignment as supply of service under Heading 99792 of the Tariff Code.

The court held that assignment of leasehold rights constitutes transfer of immovable property and falls outside the scope of supply under Section 7(1)(a) read with Clause 5(b) of Schedule II and Clause 5 of Schedule III of the CGST Act.

M/s Jubilee Engineers v. Deputy Commissioner & Anr. | R/SCA No. 14168/2024 | 27 January 2026 | Gujarat HC