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“Property rights first, taxes later – clarity for India’s real estate sector.”

Bombay HC Ruling Brings GST Relief for Developers in Joint Development Deals.                                                                                                                                            

In a major relief for real estate developers, the Bombay High Court’s Goa bench has ruled that no GST is payable on construction services under a Joint Development Agreement (JDA) once the developer gains ownership of the property through conveyance. The decision, delivered on August 21 by Justices Bharati Dangre and Nivedita P Mehta, settles a long-standing dispute on the timing of GST liability in JDAs. The case involved Provident Housing, which had challenged a tax demand and sought a refund of ₹27 crore deposited under protest. The court clarified that GST cannot be imposed upfront at the signing of a JDA if the developer ultimately becomes the property owner. Legal experts say the ruling will streamline GST treatment in redevelopment deals, reducing uncertainty and costs. As JDAs are a common model in land-constrained cities like Mumbai, Bengaluru, and Hyderabad, this judgment is expected to influence similar disputes nationwide.