Goods and Services Tax (GST) has impacted many sectors in the economy including the real estate section. One of the important aspect of real estate transactions is Joint Development Agreements (JDA) where Land owners and developers join hands for construction of Projects.
The Hon’ble Bombay High Court in the case of Provident Housing Ltd. held that there is no GST liability on the developer under a Joint Development Agreement (JDA) when the developer becomes the owner of the property pursuant to conveyance, rendering all prior claims under the JDA extinguished.
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 Patna High Court on May 5, 2025 ruled that Goods and Service Tax (GST) is payable on transfer of development rights received by a builder from a landlord prior to issuance of completion certificate (CC) and as per a joint development agreement (JDA) with the landowner.
The GST Council-nominated Group of Ministers on real estate has yet to offer clarity on the treatment and calculation of GST on Joint Development Agreements (JDAs), but a group of landowners has approached the Bombay High Court, questioning the levy of GST on development rights granted under such agreements.
Several landowners have approached the courts seeking relief from the Goods and Services Tax (GST) authorities’ decision to recover tax from landowners involved in joint development agreements (JDAs) in the real estate sector.
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.
Real estate developers are contesting the 18% Goods and Services Tax (GST) levy on the transfer of development rights within joint development agreements (JDA) between developers and landowners. They believe the JDA does not involve any sale of land and hence the transfer of the rights is not taxable.
The Hon’ble Telangana High Court in the case of M/s. Prahitha Constructions Private Limited v. Union of India and Ors.…
In a major ruling, Telangana High Court has dismissed a writ petition by a realtor challenging GST levy on ‘transfer…
