The BHC, in a recent judgment^[1], has clarified that, in terms of the Notification No. 04/2018 – Central Tax (Rate) dated January 25, 2018, the liability to pay the Goods and Services Tax (‘GST’), in a joint development arrangement between the landowners and the developer: (i) does not arise on the date of execution of the joint development agreement (even where such joint development agreement was executed prior to the date of the aforesaid Notification); and (ii) arises only at the time of the developer conveying the property to the landowners post completion of its construction, in other words upon transfer of possession or any right therein in the completed structure(s) to the landowners by way of a conveyance deed, allotment letter, or other similar instruments.

[1] M/s. Provident Housing Ltd. v. Union of India and Ors., Writ Petition No. 5 of 2022.