- Real estate developers are contesting the 18% GST levy on transfer of development rights in joint development agreements
- A developer has filed an appeal in the Supreme Court against a ruling by Telangana High Court
- Joint development agreements involve a partnership between landowners and developers for construction projects
- Experts argue that GST should not be levied on joint development agreements as there is no sale of land involved
- Tax experts believe that development rights are only incidental to the sale of land and should not be taxable under GST
- Levying GST on joint development agreements could make real estate development unviable and increase costs for buyers
- The issue of GST on transfer of development rights remains a contentious issue in the real estate industry.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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