Supreme Court Issues Notice to Centre Gvt for GST on Joint Venture/ JV Deals/ Joint Development Agreement

Supreme Court Issues Notice to Centre Gvt for GST on Joint Venture/ JV Deals/ Joint Development Agreement


2 month(s) ago

Supreme Court Considers GST Applicability on Transfer of Development Rights in Real Estate. The Supreme Court of India is examining a petition challenging the Goods and Services Tax (GST) levied on the transfer of development rights within joint development agreements (JDAs) in the real estate sector. This case has significant implications for developers and landowners nationwide. Supreme Court Issues Notice to Centre Gvt for GST on Joint Venture/ JV Deals/ Joint Development Agreement.



  • A Telangana-based property developer filed a petition contesting the Telangana High Court’s decision upholding the 18% GST on development rights transfers.
  • The developer argues that GST on development rights amounts to double taxation, as works contract services under JDAs are already subject to GST.
  • Real estate developers have also expressed concerns about the impact of GST on rehabilitation apartments provided in redevelopment projects.

Key Points:

  • The Supreme Court has issued notices to the Union government, GST Council, and the Central Board of Indirect Taxes and Customs (CBIC) to respond to the petition.
  • The Telangana High Court previously ruled that JDAs are distinct from land sale agreements, making development rights transfers taxable under GST.
  • Developers argue that since land sales are exempt from GST, taxing development rights as part of the transaction creates project feasibility issues.

Supreme Court Order on GST on Joint Venture Agreement – JVDeals



  • The outcome of this case will determine the GST treatment of development rights transfers in JDAs, impacting real estate transactions across India.
  • A decision in favor of the developer could lead to a revision of GST policies affecting JDAs and potentially reduce project costs.
  • Clarity on GST regulations will be crucial for stakeholders in the real estate sector, particularly in major cities like Mumbai, Pune, Bengaluru, Hyderabad, and Kolkata.

Arguments for Exemption:

  • Double Taxation: Experts argue that GST on development rights, alongside existing GST on works contract services, creates double taxation.
  • Land Sale vs. Development Rights: The SLP argues that JDAs involve transfers of development rights, not land itself, which is exempt from GST.
  • Project Feasibility: Developers fear the 18% GST will render many JDA projects financially unviable, particularly in major cities.

Current Status:

  • The Supreme Court has not issued a stay order, meaning GST on development rights remains applicable until the final judgment.
  • The next hearing is scheduled for September 9, 2024, after receiving responses from the government authorities.

Overall Significance:

This legal battle highlights the complexities of GST implementation in the Indian real estate sector. The Supreme Court’s verdict will influence future real estate transactions and development practices in the country.



Disclaimer: The information herein is based upon information obtained in good faith from sources believed to be reliable. All such information and opinions can be subject to change. Furthermore, The image featured in this article is for representation purposes only. It does not in any way represent the project. If you wish to remove or edit the article or want to publish your news or article please email

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