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Informative

Win for Real Estate Sector: Bombay HC Rules No GST Without Transfer of TDR or FSI

Update / Judgement Date

02 May 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

GSTRERA & Property Act

The Bombay High Court ruled that GST cannot be levied on joint development agreements unless there's actual transfer of Transferable Development Rights (TDR) or Floor Space Index (FSI). The judgment clarified that mere agreements without concrete transfers don't create a taxable supply under GST. This decision provides significant relief to real estate developers and brings clarity to tax treatment of complex development arrangements.