Mumbai: The landmark ruling by the Bombay High Court has brought significant GST relief to homeowners involved in redevelopment projects, clarifying that GST is not applicable when homeowners appoint a developer for redevelopment work, provided there is no sale or transfer of development rights (TDR) or Floor Space Index (FSI). According to CREDAI-MCHI, the decision will expedite the redevelopment process, with 25,000 buildings in the Mumbai Metropolitan Region now eligible for redevelopment.
Recently, CREDAI-MCHI hosted a seminar to explore the full implications of this ruling in the case of M/s Shrinivasa Realcon Pvt. Ltd. vs. Deputy Commissioner, Anti-Evasion Branch. The seminar was attended by Sunny Bijlani, Joint Secretary of CREDAI-MCHI, Rohit Jain, Deputy Managing Partner at Economic Laws Practice (ELP), and Harsh Shah, Partner at ELP.
Bijlani emphasized the need to address the challenges of redevelopment, particularly the stark differences in approval costs between Mumbai and other cities such as Pune and Delhi. He pointed out that resolving issues around GST interpretation and regulatory clarity could significantly accelerate redevelopment efforts, ultimately providing safer homes and improving urban infrastructure.
With over 25,000 buildings in the Mumbai Metropolitan Region eligible for redevelopment, CREDAI-MCHI reiterated its commitment to supporting developers and facilitating smoother processes through clearer legal frameworks.