Gets ₹59.44 crore GST notice over development rights bought in FY23

What happened

• Sunteck Realty received a show-cause notice from the GST department under Section 73 of the GST law, dated 24 September 2026.
• The notice seeks ₹59,43,79,402, including interest and penalty, for 2022-23. It concerns transferable development rights (TDR) that the company bought in the open market.
• Sunteck says buying TDR is neither a supply of goods nor of services, so GST does not apply. It also says the notice works out an amount twice the actual value, even though a full audit for 2022-23 had already been completed.
• The company plans to reply to the office of the Deputy Commissioner of State Tax in Mumbai.

Why it matters

A show-cause notice asks a company to explain why a demand should not be confirmed; it is not a final order. Sunteck says the notice will not affect its financial, operational or other activities. In a separate case in January 2026, a GST authority dropped an earlier demand against the company.

Good to know: Transferable development rights let a builder put up more floor space than a plot normally allows. Local authorities issue them, for example when land is handed over for a road, and they can be bought and sold.

Key facts

Demand

₹59.44 crore, incl. interest and penalty

Period

2022-23

Notice under

Section 73, GST law

Read the source

• Sunteck Realty receives ₹59 crore GST notice for TDR procurement in FY23CNBC-TV18
• Sunteck Realty receives ₹59.44 crore GST notice for FY23 TDR procurementScanX