Quick Summary: The Delhi High Court canceled a GST demand against M/S NBCC (India) Limited related to the Kidwai Nagar redevelopment project. The court sided with NBCC, stating the demand had no merit.
On 9th December 2025, the Delhi High Court made an important decision regarding a petition filed by M/S NBCC (India) Limited. The company challenged an order from 29th January 2025 by the main tax officer of Central Goods and Service Tax, Delhi South. This order demanded GST payments related to the Kidwai Nagar (East) redevelopment project.
NBCC was tasked with redeveloping Kidwai Nagar (East) for residential and commercial use. They entered an agreement with the Ministry of Urban Development on 16th July 2013. A special account was also set up with the Ministry and Union Bank of India to manage the project's lease earnings.
The GST Intelligence department in Mumbai investigated NBCC for supposedly not paying GST on lease earnings. The demand was for Rs. 45.36 crore on earnings of about Rs. 252.01 crore for the financial year 2017-18. NBCC argued that the GST demand was wrong since government departments and independent bodies don't have to pay GST.
"The demand raised by CGST, Delhi South is of no merit," stated the Ministry of Finance.
The court ordered meetings between the Ministry of Urban Development and the Finance Ministry to resolve the issue. A meeting held on 10th July 2025 under the Joint Secretary of MoHUA led to a memorandum on 30th November 2025. The Ministry of Finance concluded that the GST demand was unfair.
Justice Prathiba M. Singh and Justice Shail Jain, after considering the Ministry of Finance's opinion, canceled the GST demand on 9th December 2025. The court found that the demand lacked legal support since the CGST Act did not make both parties responsible for services.
This decision marks a significant win for NBCC, clearing them of the hefty GST demand.
