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GST exemption on leasehold land transfer: Implications for industry, government, and the economy
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Why Small Business in 2025 Should Have You Excited

GST exemption on leasehold land transfer: Implications for industry, government, and the economy

Micro, Small, and Medium Enterprises (MSMEs) and startups, which often operate with limited capital, will benefit greatly from the ruling. These entities frequently acquire leasehold land in industrial estates to set up operations and often transfer leasehold rights when expanding or restructuring,
The article from CNBC TV18 discusses the implications of the GST exemption on the transfer of leasehold land, as clarified by the GST Council. Previously, there was ambiguity regarding whether the transfer of leasehold rights on land was subject to GST, leading to disputes and litigation. The GST Council has now clarified that such transfers are exempt from GST, which is a significant relief for industries like real estate, infrastructure, and manufacturing. This decision aims to reduce the cost of doing business, enhance liquidity, and promote investment by eliminating the tax burden on long-term leases. Legal expert Abhishek A. Rastogi highlights that this move not only simplifies compliance but also aligns with the government's efforts to boost economic activities by making land transactions more straightforward and less costly. However, he also notes that the industry must adapt to these changes, and there might be a need for further clarifications on certain aspects of the exemption to ensure smooth implementation.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/business/finance/leasehold-land-transfer-gst-exemption-implications-industries-government-economy-abhishek-a-rastogi-19536067.htm ]