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GST – Applicability of GST on Compensation paid towards acquisition of Land, Solatium - Petitioners were owners of immovable properties which were acquired by the KIADB for the benefit of the BMRCL for the purpose of construction of Metro Rail Project - BMRCL offered package compensation and petitioners received compensation towards acquisition of the lands - Revenue authorities issued Show Cause Notices calling upon the petitioners to pay GST towards the solatium component of the package compensation received by the petitioners - Whether the compensation paid in favour of the petitioners towards acquisition of their lands by the State/KIADB under the head 'Solatium' is exigible to levy of GST under the provisions of the GST Act – HELD - The compensation received by the petitioners, including the solatium component, was pursuant to the agreements entered into with the KIADB under Section 29(2) of the KIAD Act, whereby the petitioners transferred, relinquished and gave up their claim, right, title, interest, possession etc., in the lands in favour of KIADB for the consideration offered by the BMRCL. Though the BMRCL categorized a particular component of the consideration offered to the petitioners as solatium, in reality, the transaction was in the nature of a sale/transfer of all rights in land of the petitioners, which was directly and squarely exempted from levy of GST under Entry 5 of the Schedule-III of the CGST Act, 2017. Compulsory acquisitions of land where the owners lose their entire right on the property is akin to sale and ought to be treated as such – Further, the agreement cannot be construed or treated as an obligation to do an act, or an obligation to tolerate an act or an obligation to refrain from an act so as to attract Entry 5(e) of Schedule II of the CGST Act - solatium is "money comfort" quantified by the statute and given as a conciliatory measure for the compulsory acquisition of land of the citizen and is intended to compensate the owner for his disinclination to part with his property - the compensation paid in favour of the petitioners towards acquisition of their lands by the State/KIADB under the head 'Solatium' is not exigible/amenable to levy of GST under the provisions of CGST/KGST Act, 2017 - the impugned show cause notices and orders are quashed and the writ petitions are allowed
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