GST demand on development rights push landowners into legal dilemma
The dispute over GST on transfer of development rights resurfaces as authorities demand landowners pay taxes on joint development agreements with developers, potentially impacting major property markets. The focus is on whether GST applies to land transactions and who is responsible for payment. Landowners face confusion as developers try to shift tax burden. Legal battles loom as tax authorities issue notices, adding to financial strain and judicial backlog.
The contentious issue of tax on transfer of development rights has resurfaced as Goods & Services Tax (GST) authorities are asking landowners to pay taxes on transferring these rights to real estate developers through joint development agreements between realty developers and landowners.
