Maharashtra land sold by General Motors to Hyundai attracts 18% GST

The transfer of Talegaon, Maharashtra, land by General Motors India to Hyundai Motor India Ltd (HMIL) is liable to 18% GST, the advance ruling authority of the state has said in a recent order.

The ruling comes in the context of transfer of GM’s `787 crore worth of Talegaon facility assets (leasehold industrial plot, buildings, and plant and machinery) to HMIL after the former stopped manufacturing activities and business as a going-concern.

The advance ruling authority rejected GM’s contention that transfer of land and buildings amounts to sale, and is therefore outside the scope of GST. It argued that the industrial plot was leased by Maharashtra Industrial Development Corporation (MIDC) for 95 years, with conditional possession, no absolute title and its transfer to any assignee requires MIDC’s prior written consent.