No GST on Development Agreement for TDR Transfer – Major Relief by Bombay High Court!

🏗️✨ No GST on Development Agreement for TDR Transfer – Major Relief by Bombay High Court! 🧾🚫

📰 Breaking News for Real Estate & Redevelopment Sectors!
In a landmark verdict, the Nagpur bench of the Bombay High Court has ruled that GST is NOT applicable on the transfer of Development Rights (TDR) or Floor Space Index (FSI) under a development agreement. 🏢⚖️

This is a big win for developers, landowners, and housing societies across India! 🎉🏘️

🕵️‍♂️ What Was the Case About?

🏗️ Shrinivasa Realcon Pvt Ltd entered a development agreement with a landowner in Jan 2022
📍 Plot size: 8,000 sq. ft.
🏢 Deal: Build multi-storey building + give 2 flats & payment to landowner
📜 GST Dept issued notice, citing 2017 notification and demanded GST on the deal

⚖️ But the Bombay High Court said 👉 NO GST is applicable in this case!
🧠 The court clarified: This isn’t a simple “supply of goods or services” – it’s part of a redevelopment agreement, which doesn’t trigger GST! 🙅‍♂️

💼 Who Benefits from This Ruling?

✅ Builders & Developers – Redevelopment just became more cost-effective!
✅ Housing Societies – You can go for redevelopment without GST worry!
✅ Landowners – No tax burden for giving TDR/FSI in exchange for flats or payment

This could revive stalled redevelopment projects and reduce overall construction cost. 🔧🏗️💰

📞 Talk to the Experts at Dhan Tax!

Confused about how this applies to your project? Want to structure your agreement smartly?

👉 We’re here to help! Dhan Tax brings real estate tax expertise, clarity on court rulings, and tailored advice to your table. 🧾📊

📱 Call Us: +91-7678456921
📧 Email: support@dhantax.com
🌐 Visit: www.dhantax.com