The Supreme Court has directed the Additional Solicitor General to file an affidavit for the Union of India; in a Special Leave Petition, challenging the constitutional validity of the levy of Goods and Services Tax (‘GST’) on Rent and Lease Payments, on the grounds that: a) renting is neither a good nor service and thus GST cannot be levied on such payments, under Article 246 A of the Constitution; and b) since, immovable property can only be taxed by State Legislature under Entry 49 List II of the Seventh Schedule of the Constitution, it is improper to levy GST on lease/ rent payments under Article 246A of the Constitution.
Strategic Consultant
