- No GST on Land Development Rights: The Nagpur Bench of the Bombay High Court ruled that no Goods and Service Tax (GST) is applicable on services related to the transfer of land development rights or Floor Space Index (FSI), clarifying that these rights do not constitute a taxable service under the current GST framework.
- Court’s Findings on Development Agreements: The bench, comprising Justice Avinash G. Gharote and Justice Abhay J. Mantri, determined that the transaction in question, as per the Agreement of Development, did not fall under the scope of clause (5-B) of the GST Notification, which pertains specifically to services supplied by promoters for construction projects.
- Quashing of Tax Notices: The court quashed the tax demand and show cause notices issued to the petitioner, concluding that the transaction outlined in the development agreement did not meet the criteria necessary to attract GST as defined by the relevant notifications and regulations.
Source Jurishour
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