AAR, GM India’s Asset Transfer as Taxable Services and Goods: Case of General Motors India Pvt Ltd, AAR Maharashtra Ruling Dated 10th March 2025. AAR ruled that General Motors India’s (GM India) assignment of leasehold rights for land and buildings under an Asset Purchase Agreement constitutes a taxable supply of services under the Goods and Services Tax (GST) laws. It clarified that this transfer is akin to “agreeing to do” the transfer of leasehold rights, classifying it under “Other miscellaneous service” and subjecting it to an 18% GST rate.
— However, It ruled that the sale of plant and machinery by GM India under the same agreement qualifies as a taxable supply of individual goods. Consequently, GST will be applicable to the agreed price for each item of plant and machinery or the input tax credit availed, adjusted as per regulations, whichever is higher, based on their respective classifications and rates. (AAR Maharashtra Ruling Dated 10/03/2025)