General Motors India’s transfer of its Talegaon plant to Hyundai Motor India will attract 18% GST, according to a ruling by the Maharashtra Authority for Advance Rulings (AAR). The ₹787 crore deal includes leasehold land, buildings, and machinery. AAR classified the leasehold land assignment as a taxable supply of service, not an immovable property sale. This ruling may set a key precedent for similar industrial asset transfers.

BulletsIn

• GM to pay 18% GST on Talegaon plant transfer to Hyundai
• Maharashtra AAR says leasehold rights = taxable service, not property sale
• Deal value: ₹787.18 crore, estimated GST: ₹141 crore
• Leasehold land transfer taxed under “Other Misc. Services” (SAC 999792)
• MIDC owns land; GM only held leasehold, hence no title transfer
• Plant machinery, building also taxed under GST in the same transaction
• Ruling clarifies GST applies even for long-term lease assignments
• No exemption like initial government allotments for resale/assignments
• Legal experts say double taxation possible (GST + stamp duty)
• Conflicting verdicts across India; Gujarat HC held similar deal non-taxable