GST on Solatium Paid for Land Acquired Under Compulsory AcquisitionValidity ofACS. Shruti Phophaliya

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The Tax Publishers GST--Levy and Collection of tax GST on Solatium Paid for Land Acquired Under Compulsory Acquisition--Validity of ACS. Shruti Phophaliya The learned author seeks to analyze an important issue as to whether compensation paid towards acquisition of lands by the State under the head 'Solatium' is exigible/amenable to GST under the provisions of CGST/KGST Act, 2017. The related issue is being discussed in the light of relevant statutory provisions and the Karnataka High Court decision in case of Asha R v. Asstt. CCT, decided on 10-09-2024. 1. Introduction In recent years, tax authorities have been increasingly attempting to expand the GST net to include various forms of "agreements to tolerate an act". One such attempt involved levying GST on the solatium/compensation received by landowners during compulsory acquisition by Government agencies. In this regard, an important question arises for consideration as to whether the mandatory transfer of land and subsequent receipt of solatium/compensation, constitutes a taxable supply under the GST regime. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Levy and Collection of tax

GST on Solatium Paid for Land Acquired Under Compulsory Acquisition--Validity of

ACS. Shruti Phophaliya

The learned author seeks to analyze an important issue as to whether compensation paid towards acquisition of lands by the State under the head 'Solatium' is exigible/amenable to GST under the provisions of CGST/KGST Act, 2017. The related issue is being discussed in the light of relevant statutory provisions and the Karnataka High Court decision in case of Asha R v. Asstt. CCT, decided on 10-09-2024.

1. Introduction

In recent years, tax authorities have been increasingly attempting to expand the GST net to include various forms of "agreements to tolerate an act". One such attempt involved levying GST on the solatium/compensation received by landowners during compulsory acquisition by Government agencies.

In this regard, an important question arises for consideration as to whether the mandatory transfer of land and subsequent receipt of solatium/compensation, constitutes a taxable supply under the GST regime.