Cost pressures to ease, boost project viability: Developers

The Bombay High Court's ruling that goods and services tax (GST) will apply only at the stage of property transfer in joint development agreements (JDAs) is set to ease cost pressures, improve project viability, and provide greater pricing predictability for homebuyers, according to developers.

- PRACHI PISAL & SANKET KOUL

However, legal experts cautioned that larger questions on eligibility of input tax credit will require clarity along with an eventual decision from the Supreme Court as the ruling may be challenged in the apex court.

Mayank Arora, Partner at The Chambers of Bharat Chugh, said that given the Centre's fiscal stake in GST collections, an appeal before the Supreme Court cannot be ruled out.

"By their own admission, GST authorities have conceded that the interpretation as upheld in the judgment is the correct position of law thereby curtailing litigation on this subject. But, the last word has not yet been spoken. Given the Centre's fiscal stake in GST collections, an appeal before the Supreme Court cannot be ruled out," he said.