Facts of the Case

P. Lalith Sandeep Nishank leased immovable property (H.No.3-1-106, Tandur, Ranga Reddy District, GSTIN 36ANTPP1362A123) to the State Bank of India under a registered lease deed dated 22.05.2015, subsisting until 2030. During the tenancy period, GST came into force, allegedly making the Bank liable to pay GST on the monthly lease amount so that the petitioner could remit it to the tax authorities. The petitioner submitted representations dated 13.06.2020 and 10.02.2020 seeking release of the GST amount over the rent, which remained unanswered for over three years.

Issues Involved

  1. Whether the petitioner's representations for payment of GST on the lease rent should be directed to be considered, given prolonged non-response by the Bank.

Petitioner's Arguments

  • GST on the lease amount was legally payable to the petitioner by the respondent Bank so that it could be remitted to the concerned tax authorities.
  • Despite submitting representations in 2020, there had been no response for over three years, leaving the petitioner unable to take further action.
  • At minimum, a direction should issue to the Bank to consider the representations or, alternatively, the petitioner should be left to pursue other legal remedies.

Respondent's Arguments

  • No counsel appeared for the respondents in the recorded proceedings; no counter position is on record.

Court Order / Findings

  • The Court found no necessity to issue notice to the respondents, since the petitioner was merely seeking consideration of its pending representations.
  • It directed Respondent Nos. 2 and 3 (State Bank of India officials) to consider the representations dated 03.06.2020 and 10.02.2020 and pass appropriate orders within six weeks of receiving a copy of the order, communicating the decision to the petitioner.

Important Clarification

The Court did not decide whether SBI is actually liable to pay GST on the lease rent — it only directed the Bank to consider and respond to the long-pending representations within six weeks. Whether the landlord ultimately receives GST reimbursement on the lease depends on that decision, and on the underlying lease terms, which were not examined in this order.

Sections Involved

  • Central Goods and Services Tax Act, 2017 (GST applicability on lease rent for immovable property)

Decision – In Favour of

Disposed of with a procedural direction only — the Bank must consider and respond to the pending representations within six weeks — no ruling on the Bank's actual GST liability on the lease rent.

Case Details

  • Court: High Court for the State of Telangana at Hyderabad
  • Case No.: Writ Petition No. 19195 of 2023
  • Coram: Hon'ble Sri Justice Mummineni Sudheer Kumar
  • Date of Order: 20.07.2023

Link to Download the Order

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