In a landmark development for industries across the country, the Hon’ble Supreme Court of India has dismissed the Special Leave Petitions (SLPs) filed by the Union of India challenging the landmark Gujarat High Court judgment in the case of Gujarat Chamber of Commerce & Industry & Ors. concerning the levy of GST on the transfer/assignment of industrial leasehold rights.
The matters were heard on 21 July 2026 by a Bench comprising Hon’ble Mr. Justice Pamidighantam Sri Narasimha and Hon’ble Mr. Justice Alok Aradhe. The Supreme Court noted that it had already dismissed a similar SLP on 22 May 2026 and, following the same view, dismissed the present batch of SLPs. (Read More about 22.05.2026 Judgment)
A Landmark Judgment That Shaped Litigation Across India
The Gujarat High Court’s judgment dated 3 January 2025 was the first comprehensive decision to hold that GST is not leviable on the transfer or assignment of leasehold rights in industrial plots allotted by State Industrial Development Corporations such as GIDC.
The judgment quickly assumed national importance. Courts across the country, while dealing with identical disputes, have relied upon or drawn support from the principles laid down by the Gujarat High Court. Consequently, the challenge before the Supreme Court was being closely watched by industries, trade bodies and tax professionals throughout India.
Had the Supreme Court interfered with or stayed the Gujarat High Court judgment, the legal foundation supporting similar cases pending before various High Courts could have been significantly impacted. The dismissal of the SLPs therefore provides considerable stability to the legal position that has emerged over the last eighteen months.
A Significant Milestone for MSMEs
The issue extends far beyond Gujarat. Thousands of MSMEs across India have received demands for GST on the transfer or assignment of industrial leasehold rights in plots allotted by State Industrial Development Corporations such as MIDC, GIDC and other similar authorities.
Today’s order strengthens the persuasive value of the Gujarat High Court judgment and provides greater confidence to industries that are contesting similar demands in different States.
While the dismissal of an SLP does not constitute a declaration of law under Article 141 of the Constitution, the Supreme Court’s repeated refusal to interfere with the Gujarat High Court judgment is an important judicial development that is likely to carry substantial persuasive value before courts and tax authorities.
COSIA’s Continuing Fight for Maharashtra Industries
Recognising the serious consequences of this issue for Maharashtra industries, COSIA has been at the forefront of the legal challenge before the Hon’ble Bombay High Court.
COSIA, along with other petitioners, has challenged the levy of GST on assignments of leasehold rights in MIDC plots. The Bombay High Court has already granted interim protection against coercive recovery and adjudication, and the matter is pending final adjudication.
Today’s decision of the Supreme Court significantly reinforces the legal position that COSIA has consistently advocated. Since the Bombay High Court proceedings involve substantially similar questions of law, the continued refusal of the Supreme Court to interfere with the Gujarat High Court judgment is an important and welcome development for industries in Maharashtra.
