Mandatory 1/3rd deduction towards the value of land is ultra-vires: Gujarat HC
The Hon’ble High Court of Gujarat vide its order dated 06th May 2022 in the matter of Munjaal Manishbhai Bhatt Vs Union of India in Special Civil Application No. 1350 of 2021 held that impugned Paragpragh 2 of the Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 and identical notification under the Gujarat Goods and Services Tax Act, 2017, which provide for a mandatory fixed rate of deduction of 1/3rd of total consideration towards the value of land is ultra-vires the provisions as well as the scheme of the GST Acts. Application of such mandatory uniform rate of deduction is discriminatory, arbitrary and violative of Article 14 of the Constitution of India.