Tag: Goods and Services Tax

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Bombay HC Provides Tax Relief for Builders in Joint Developments

In a significant development for real estate developers, the Bombay High Court’s Goa bench has determined that no goods and services tax (GST) is due on construction services under a joint development agreement (JDA) once the developer takes ownership of the property through conveyance. This ruling resolves a longstanding controversy regarding the point of taxation in JDAs, where the revenue department argued for GST applicability at the time of signing the agreements, while developers contended that liability should only arise upon the transfer of the completed property. This judgment is poised to bring much-needed clarity to developers involved in JDA-based…

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GST Council Approves Two-Tier Tax Structure Starting September 22

NEW DELHI: The GST Council has approved reductions in tax rates on commonly used items such as hair oil, corn flakes, televisions, and health and life insurance policies, marking a significant revamp of the Goods and Services Tax system. The new GST rates, effective from September 22, will reduce the current four tax slabs to just two: 5% and 18%. This change comes as India prepares for the start of Navaratri. This initiative aims to enhance domestic spending and mitigate the economic impact of US tariffs by significantly lowering tax rates on most personal use items. Following a lengthy GST…