TNHB Must Execute Allottee’s Sale Deed Without ₹5.15 Lakh Additional GST Upfront, Subject To Appeal Outcome: Madras HC

The petitioner was allotted a Tamil Nadu Housing Board flat under the Self Finance Scheme and stated that she had paid the entire sale consideration; an agreement for sale was executed on 31 October 2023.

When she sought execution of the sale deed, the Board required her to pay an additional 5% GST of Rs. 5,15,450 as a condition of execution.

She sought execution without that payment, subject to the outcome of pending writ appeals concerning the Board’s additional GST demand.

The Division Bench had directed the Board to execute sale deeds for eligible allottees without insisting on the additional GST, subject to the outcome of those appeals.

The Division Bench’s order dated 28 August 2025 in W.A. Nos. 2565 of 2025 etc. directed the Tamil Nadu Housing Board to execute sale deeds for otherwise eligible allottees without demanding the additional 5% GST, subject to the outcome of the appeals.

If the Board ultimately succeeds and the additional GST is held payable, the allottees who obtain deeds under that arrangement must pay it; any refund claim by allottees who have already paid the additional amount was to await the appeal outcome.

The judgment applied this interim arrangement; it identified no statutory provision as an independent basis for decision.

The petitioner’s challenge concerned the same additional GST demand addressed by the Division Bench’s order.

As the petitioner sought execution without payment and undertook to abide by the appeals’ outcome, the Court applied that order and directed execution without insisting on the disputed amount. The direction remained conditional on the final decision in the pending appeals.

Any refund claim was to await the outcome of those appeals.

No costs were awarded.