Telangana HC dismisses GST challenge, reshaping RE dynamics nationwide

13 Feb 2024 CW Team

Redevelopment projects play a pivotal role in the functionality of property markets, particularly amid rising land prices and diminishing availability of vacant land parcels in key urban centres.

This ruling is poised to transform the landscape of property development, influencing stakeholders and reshaping strategies within the real estate sector. The 18% GST levy on the value of development rights will render various projects in key markets like Mumbai, Pune, Bengaluru, Hyderabad, and Kolkata unfeasible for all stakeholders, including landowners.

Abhishek A Rastogi, founder of Rastogi Chambers, who represented the petitioner, remarked, "This is a significant industry issue that was likely to be resolved only before the Supreme Court. With several writ petitions on this issue pending in various courts, the industry will need to wait for some time to achieve tax certainty on this matter." He also indicated the possibility of challenging this decision in the Supreme Court.

The South India-based developer filed a writ petition in 2020 following a GST notification in 2019 that outlined the point of taxation for imposing tax on the transfer of development rights from the landowner to the realty developer. The petition argued that the authority effectively intended to tax a transaction similar to the sale of land.

Rastogi explained that the crucial point before the high court was whether GST is applicable in the case of a joint development agreement when there is a transfer of development rights from the landowners to the developer. The question revolved around whether the point of taxation to determine the timing of tax payment can be determined through a notification when the taxability of the transaction itself is disputed.

He added, "It must be noted that the sale of land is specifically excluded from the purview of GST as stamp duties are levied on these transactions. It was argued before the court that the transfer of development right is akin to the sale of land and hence should not be subject to GST."

In June, real estate developers expressed concerns to the Ministry of Finance about the impact of GST being levied on rehabilitation apartments being built and given back, free of cost, to existing occupants as part of redevelopment projects. The Confederation of Real Estate Developers' Association of India (CREDAI) - MCHI, wrote to Finance Minister Nirmala Sitharaman requesting a change in the GST structure to ensure the viability of redevelopment projects in the Mumbai Metropolitan Region (MMR).

Redevelopment and rehabilitation projects are crucial in Mumbai's property market, given the scarcity of vacant land parcels. Currently, around 19,000 properties in the city await redevelopment.

The Telangana High Court has issued a significant judgment by rejecting a legal challenge raised by a real estate developer against the imposition of Goods & Services Tax (GST) on the transfer of development rights within joint development agreements. This decision is expected to have far-reaching implications on major property markets nationwide, signalling a crucial shift in the cost dynamics of redevelopment projects. Redevelopment projects play a pivotal role in the functionality of property markets, particularly amid rising land prices and diminishing availability of vacant land parcels in key urban centres. This ruling is poised to transform the landscape of property development, influencing stakeholders and reshaping strategies within the real estate sector. The 18% GST levy on the value of development rights will render various projects in key markets like Mumbai, Pune, Bengaluru, Hyderabad, and Kolkata unfeasible for all stakeholders, including landowners. Abhishek A Rastogi, founder of Rastogi Chambers, who represented the petitioner, remarked, This is a significant industry issue that was likely to be resolved only before the Supreme Court. With several writ petitions on this issue pending in various courts, the industry will need to wait for some time to achieve tax certainty on this matter. He also indicated the possibility of challenging this decision in the Supreme Court. The South India-based developer filed a writ petition in 2020 following a GST notification in 2019 that outlined the point of taxation for imposing tax on the transfer of development rights from the landowner to the realty developer. The petition argued that the authority effectively intended to tax a transaction similar to the sale of land. Rastogi explained that the crucial point before the high court was whether GST is applicable in the case of a joint development agreement when there is a transfer of development rights from the landowners to the developer. The question revolved around whether the point of taxation to determine the timing of tax payment can be determined through a notification when the taxability of the transaction itself is disputed. He added, It must be noted that the sale of land is specifically excluded from the purview of GST as stamp duties are levied on these transactions. It was argued before the court that the transfer of development right is akin to the sale of land and hence should not be subject to GST. In June, real estate developers expressed concerns to the Ministry of Finance about the impact of GST being levied on rehabilitation apartments being built and given back, free of cost, to existing occupants as part of redevelopment projects. The Confederation of Real Estate Developers' Association of India (CREDAI) - MCHI, wrote to Finance Minister Nirmala Sitharaman requesting a change in the GST structure to ensure the viability of redevelopment projects in the Mumbai Metropolitan Region (MMR). Redevelopment and rehabilitation projects are crucial in Mumbai's property market, given the scarcity of vacant land parcels. Currently, around 19,000 properties in the city await redevelopment.

Infrastructure Urban

13 Mar 2026

Implementation Status of Jal Jeevan Mission

Since August 2019 the Government has implemented Jal Jeevan Mission to provide assured potable water through household tap connections in rural India. At the start of the mission only 32.3 million (mn) rural households, representing 16.7 per cent, were reported to have tap water connections. States and union territories have reported that 125.8 mn additional rural households have since been provided with tap connections. As a result, of about 193.6 mn rural households roughly 158.2 mn, or 81.71 per cent, are reported to have tap water supply at home.\n\nThe State, district and village level st..

Infrastructure Urban

13 Mar 2026

Jal Jeevan Mission Reaches Eighty One Per Cent Rural Coverage

The Government reported substantial progress under the Jal Jeevan Mission, launched in August 2019 to provide tap water to every rural household. At launch only 32.3 million (mn) rural households had tap connections and states and Union territories reported provision of 125.8 mn additional households by March 2026. Consequently, out of about 193.6 mn rural households around 158.2 mn, or 81.71 per cent, are reported to have tap water at home. The Finance Minister announced extension of the mission until 2028 in the 2025-26 budget speech. The Swachh Bharat Mission Grameen, launched in October 20..

Infrastructure Urban

13 Mar 2026

Empowering Local Governance for Sustainable Rural Water Supply

The Ministry of Jal Shakti has aligned the Jal Jeevan Mission (JJM) with the 73rd Amendment to strengthen village level planning and community ownership of water supply. Gram Panchayats, village water and sanitation committees and Pani Samitis are to plan, implement, manage and maintain piped water systems, with gram sabha processes formalising handover and oversight. Implementation support agencies including non government organisations, community based organisations and self help groups have been empanelled to train local committees and promote women participation. Under JJM, the department ..