Mum. redevelopment projects, 3 GST sees court cases build-up

18 Sep 2023 CW Team

The redevelopment of cooperative housing societies (CHS) in Mumbai is currently in full swing, but a complex web of issues related to the Goods and Services Tax (GST) within these redevelopment schemes is giving rise to legal disputes. In light of these challenges, appeals are being made to the finance ministry to streamline the tax mechanism and provide clarity for stakeholders.

In typical CHS redevelopment scenarios, members collectively transfer their development rights to a redeveloper. Upon completion of the project, they receive a new flat in exchange for their old one. The redeveloper, in turn, leverages the additional Floor Space Index (FSI) available under redevelopment regulations to construct additional flats for sale in the open market. This enables the builder to recover the cost of rehabilitation, offering new flats free of charge to the original members.

However, redevelopment projects face a triple GST impact, which not only adds to the overall project costs but also affects their viability. The first GST levy, set at 18%, is applied to the transfer of development rights to the builder (redeveloper). Importantly, this levy is contingent on the sale of flats post-acquisition of the project's completion certificate.

The intricate GST framework within redevelopment schemes has led to ambiguity and complications, causing concerns for both developers and housing society members. To address these challenges, stakeholders are urging the finance ministry to establish clear guidelines and a more streamlined tax mechanism that ensures fairness and clarity in these redevelopment projects.

As the redevelopment of cooperative housing societies continues to be a critical aspect of Mumbai's urban landscape, resolving GST-related issues is essential to ensure the sustainability and success of these vital projects.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..