Municipal Corporation to sale plot instead of Lease to avoid GST

The Ahmedabad Municipal Corporation (AMC) decided to put up for sale all newly constructed properties rather than lease them for 99 years.

This occurs to avoid the 18% Goods and Services Tax (GST) that lease deeds would incur. There is no official confirmation on whether this policy will apply to open plots, but AMC sources claim it will.

According to the sources, they have been trying to sell multiple residences for three years, but buyers have been hesitant owing to the GST issue. As a result, they decided to sell these residences outright.

In recent years, the AMC auctioned off 99-year leases on four sites for Rs. 240 crore but received an 18% GST demand for Rs. 43 crore.