Landowner Development Rights Transfers Under JDA Classified as Services, Subject to GST, Not Entry 5 of Schedule-III.

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Full Text of the Document

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....Levy of GST - transfer of development rights of land by the land owners to the petitioner by way of a Joint Development Agreement - sale of land by the land owners or not - The High court found that the transfer of development rights is a service and not an outright sale of immovable property. The JDA facilitates development but does not, in itself, transfer ownership. Thus, such transfers are subject to GST and cannot be considered under Entry 5 of Schedule-III of the GST Act. - The court upheld the constitutionality of the notification, noting that it is based on the recommendations of the GST Council and issued within the powers conferred by the GST laws and the Constitution.....