Curation Team
AHMEDABAD: The standing committee of the Ahmedabad Municipal Corporation (AMC), on Thursday, approved the proposal to auction eight plots — six for commercial use and two for residential use — in areas such as Bodakdev, Makarba, Thaltej, and Vejalpur. The total reserve price for these plots is pegged at Rs 835.77 crore.
Sources said, according to the corporation’s recently revised leasing policy, these plots will be sold on sales deeds and not leased on 99-year period. This will result in the government losing 18% Goods and Services Tax (GST) which it used to collect from buyers who leased civic body’s properties earlier.
The AMC, facing challenges in selling plots and properties due to the 18% Goods and Services Tax (GST) levied on lease transactions, recently revised its leasing policy in November.
The new policy involves selling the plots on sales deeds instead of leasing them for a 99-year period. This change eliminates the 18% GST burden on buyers, making investments in AMC properties more attractive.
AMC will soon be auctioning plots where development rights, not lease, will be sold, exempting buyers from GST payment.
