No demand to be raised on landowner if developer paid GST for whole property under joint development agreement { Shyamaraju & Co. (India) Pvt. Ltd. V/s DCCT (Audit) Bangalore – (2025) 33 Centax 223 (kar.)}
Facts:
The petitioner, a landowner, entered into a Joint Development Agreement (JDA) with a developer for construction of residential apartments. The developer discharged the entire GST liability, including on the landowner’s 30% share. Despite this, the department demanded GST again from the landowner, contending that the JDA was unregistered and thus ineffective for tax purposes.
Issue:
Whether GST demand can be raised again on the landowner when the developer has already discharged the entire GST liability under the JDA.
Held:
No demand can be raised on the landowner. Since the developer had already paid GST on the entire property, a further demand would amount to double taxation. The revenue, having earlier accepted the JDA and payment by the developer, was estopped from taking a contrary stand. The impugned order was quashed.
