Supreme Court pauses GST demand on real estate project
The Supreme Court has hit pause on a GST tax demand involving a real estate project built under a joint development agreement (JDA).
This move gives developers like Arham Infra and Nirmite Buildtech some breathing room, as the January 2025 tax order won't be enforced for now.
The court has also asked the central government and others to weigh in, with a hearing set within four weeks of its October 13 order.
Why this case matters
This case is a big deal because it questions whether giving up development rights in JDAs counts as a taxable service under GST or is just part of selling land—which is usually exempt.
Legal experts say taxing these deals could mean double taxation for developers and landowners, making urban redevelopment projects more expensive.
The Supreme Court's decision spotlights ongoing debates about how GST applies to India's growing real estate scene, something that could affect future city projects and housing costs.