The goal of this article is to cover all recent GST case laws January 2025. All latest high court judgement on gst and all latest supreme court judgments on gst issued in January 2025 have been covered in this article. All latest GST case laws of January 2025 in this article have been classified by name, date, judge, counsel, GST concept, GST section, etc. In addition, a PDF of the GST case law is provided with the case law so that the user can download it for further study.
GST Case law on No GST on Transfer of Leasehold Rights in Land
Gujarat High Court has ruled that transfer of leasehold rights in land is not subject to GST.
| Gujarat High Court Judgement 2025 |
| Name of case : Gujarat Chamber of Commerce and Industry & Ors VS UOI & Ors |
| Date of Judgment : 03-01-2025 |
| Appeal No : R/Special Civil Application No 11345 of 2023 |
| Judges : BHARGAV D. KARIA, NIRAL R. MEHTA |
| Counsel Name : Mr.S.N.Soparkar, Mr.Monal Davawala and others |
| Fact of the Case:The Gujarat Industrial Development Corporation (GIDC) provides industrial plots on a 99-year lease to support industrial growth. Recently, tax authorities tried to impose GST on the transfer of these leasehold rights, which raised concerns among MSMEs and business groups. They argued that this tax burden could harm industrial development. As a result, the Gujarat High Court, in the case of Suyog Dye Chemie Pvt. Ltd. vs. Union of India, issued a stay order, temporarily stopping the GST demand on such lease transfers until the matter is fully examined. |
| Held by court :The Gujarat High Court ruled that transferring or assigning leasehold rights along with land and buildings amounts to the transfer of immovable property. Permanently assigning leasehold rights to a third party does not qualify as a “lease” under Section 7, read with Entry 2(a) of Schedule II of the CGST Act, 2017. As a result, such transactions are not subject to GST. Additionally, land-related transactions are clearly excluded from GST under Entry 5 of Schedule III of the CGST Act, 2017. |
| In favor of : Assessee |
| Topic of GST : Sale or Transfer of Leasehold Rights in industrial land |
| Section of GST: Schedule III of CGST Act ,2017 |
Download PDF of Guajrat High Court Judgement of Gujarat Chambers of Commerce & Industry
GST Case laws on Relief in Corporate Guarantee
Bombay High Court stayed GST on corporate guarantees by parent companies to subsidiaries under Circular No. 204/16/2023-GST.
| Bombay High Court Judgement 2025 |
| Name of case : Vedanta Limited VS Union of India . |
| Date of Judgment : 08-01-2025 |
| Appeal No : WP No 4519 of 2024 |
| Judges : B.P Colabawalla & Firdosh P. Pooniwalla, JJ. |
| Counsel Name : Mr. Rohan Shah, Kumar Visalaksh, Ajitesh Dayal Singh, Ginita Bodani, Rahul Khurana, Mohammed Anjajwalla. |
| Fact of the Case:Vedanta Ltd. filed a writ petition challenging the classification of corporate guarantees as a supply of service under Schedule I of the CGST Act, even without consideration. Vedanta argues that valuing such guarantees at 1% of the guaranteed amount is excessive and burdensome, discouraging companies from protecting their investments. The company contends that providing a corporate guarantee is merely safeguarding investments and does not constitute a supply under the CGST Act or Article 246A of the Constitution. Vedanta also challenges the circular and Rule 28(2) of the CGST Rules, 2017, as arbitrary, unconstitutional, and beyond legal authority. |
| Held by court : The High Court stayed the enforcement of Item No. 2 in the circular, which clarifies the taxability of corporate guarantees as a supply of service. It also permitted Vedanta to amend its petition to challenge the retrospective amendment of Rule 28(2) and Circular No. 225/19/2024-GST. |
| In favor of : Assessee |
| Topic of GST : GST on Corporate Gurantee |
| Section of GST: Circular No 225/19/2024 Read with Rule 28(2) of CGST Rules,2017 |
