Gst on third party transfer of MIDC plot proceeds

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Vijay Gawande (Querist)
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03 January 2025 Industrial bodies have requested reduction or abolition of gst on such transactions.Any clarification has come into force.
In fact leasing activity is done by MIDC not buy the seller, hence such taxation is not justified in addition to stamp duty.Please clarify.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 January 2025 As of now, there has been no official clarification or change in the GST rate on MIDC industrial plot transactions. The government continues to treat these transactions as leases, which are considered services and thus subject to GST.

This issue has been a point of contention, with tax consultants questioning the GST department's approach. The situation remains that:

Original allotment by MIDC is not subject to GST.
Subsequent transfers or leases of the plot by the original allottee are subject to 18% GST.