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The Bombay High Court’s Goa bench has ruled that Goods and Services Tax (GST) is not applicable on construction services under a Joint Development Agreement (JDA) once the developer becomes the property owner through conveyance.
The Hon’ble Karnataka High Court in the case of M/s. Shyamaraju And Co (India) Private Limited held that GST demand on the Petitioner (Landlord) under an unregistered Joint Development Agreement is unsustainable where the registered developer has already discharged the entire liability, preventing double taxation.
Amid an ongoing legal battle on GST’s application on Joint Development Agreement (JDA) in the real estate sector, the GST Council is expected to look into the issue, as suggested by the Group of Ministers, on September 9.