GST Update

Desk of CA. Praveen Sharma – 893 Series (CAPS)

Bombay High Court in the case of The Estate Investment Company Pvt. Ltd.

The Bombay High Court heard arguments from both sides in a batch of writ petitions challenging GST demands.

The petitioners relied on a Gujarat High Court judgment holding that GST is not payable on assignment of leasehold rights in land and buildings allotted by a State Industrial Development Corporation when transferred for a lump-sum consideration.

It was contended that such assignment amounts to transfer of an interest in immovable property and therefore does not qualify as a “supply” under GST law.

The Revenue informed the Court that an appeal against the Gujarat High Court judgment is pending before the Supreme Court and that notice has been issued.

The Court observed that mere issuance of notice by the Supreme Court does not dilute the binding nature of the Gujarat High Court ruling on identical facts.

Considering the issues involved, the Court adjourned the matters to 6 February 2026 and granted interim protection to the petitioners.

Till the next date of hearing, the Court directed that no coercive action shall be taken pursuant to the impugned show cause notices or orders and permitted the parties to complete pleadings.

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Regards 
CAPS