No GST at the time of entering into a JDA but, will arise at transfer/possession via conveyance/allotment letter only with actual transfer under conveyance

Last updated: 17 September 2025

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The Bombay High Court has ruled that Goods and Services Tax (GST) is not applicable at the time of signing a Joint Development Agreement (JDA). Liability only arises when the developer actually transfers possession or rights to the property through a conveyance or allotment letter. The court also noted that the developer had become the property owner via a subsequent sale deed, extinguishing all prior JDA claims, and ordered a refund of overpaid GST with interest.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in the case of Provident Housing Ltd. v. Union of India & Ors. [Writ Petition No. 5 of 2022, order dated August 21, 2025] held that there is no GST liability on the developer under a Joint Development Agreement (JDA) when the developer becomes the owner of the property pursuant to conveyance, rendering all prior claims under the JDA extinguished.

Citation :
Writ Petition No. 5 of 2022, order dated August 21, 2025

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5868_provident_housing_ltd.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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