Landowners seek GST relief on joint development pacts

Dated on: Tuesday 22nd April 2025

Landowners across India are seeking GST relief on Joint Development Agreements (JDAs), arguing that the transfer of development rights should not be taxed as it is akin to a land sale, which is outside GST’s scope. Tax authorities, however, claim it's a taxable supply under the forward charge mechanism. Several petitions have been filed, including one in the Bombay High Court, and the Supreme Court has admitted a case challenging GST on JDAs. The outcome may impact real estate project structures nationwide. Despite industry pushback, a GST Council group remains opposed to altering the existing tax structure for such agreements.