SC Halts GST Demand on Real Estate Joint Development Deals
MUMBAI: The Supreme Court has put a hold on a goods and services tax (GST) demand linked to a joint development agreement (JDA) for a real estate project, a ruling that could significantly affect real estate developers and landowners nationwide. JDAs are commonly used as they permit developers to access land without making an upfront payment. Authorities are attempting to categorize the transfer of land development rights under JDAs as a taxable ‘supply of service’ according to GST regulations. Developers contest this classification, asserting that the agreement fundamentally involves a ‘transfer of land’, which falls outside the GST framework. A…