Case Of: Safal Construction (India) Pvt Ltd
Issued By: Gujarat High Court
Order No: SCA 7768 of 2025
Date: 19th June 2025
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Petitioner was granted approval for a Slum Rehabilitation Scheme by the State Government and AMC in 2012 under the 2010 Policy framework.
Entitlement to utilize Floor Space Index (FSI) was derived from the General Development Control Regulations (GDCR) and the Rehabilitation Policy.
Clause 12.6.4.3 of the policy permits Transferable Development Rights (TDR) to be utilized on non-slum plots, proportionate to Jantri values.
Petitioner contended that the sale of TDR is a transfer of immovable property arising from statutory rights, not a taxable supply under GST.
The petitioner submitted that the TDR is intrinsically linked to land rights and partakes the character of immovable property.
And therefore argued that the TDR does not constitute ‘supply of service’ under Section 7 of the CGST Act, 2017.
The Court restrained GST authorities from initiating coercive recovery proceedings in respect of TDR transactions during the pendency of the writ petition.
Notice issued to the respondents, returnable on 30th July 2025; interim protection granted to the petitioner till further orders.