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Companies drag government to court over GST on long-term land lease deals

Some companies have dragged the government and the indirect tax department to court over GST levied on longterm land lease deals. As per the current regulations, 18% GST is levied on any long term (99 years) lease transactions. The GST paid becomes a cost as it cannot be used as input tax credit in case the recipient wishes to construct a hotel or any other commercial property on it. The companies have filed a writ petition in the Rajasthan High Court demanding that either GST be removed from such transactions or they be allowed to claim credit.

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