D.Hamsa Sundaramoorthy Vs Managing Director (Madras High Court)
The Hon’ble Madras High Court in the case of D. Hamsa Sundaramoorthy & Ors. v. The Managing Director, Tamil Nadu Housing Board & Ors. [W.P. Nos. 33993 & Ors. of 2024 dated June 02, 2025] held that where the flat price was expressly advertised as “inclusive of GST”, Tamil Nadu Housing Board could not thereafter demand an additional 5% GST from the allottees.
Facts:
The Petitioners (“the Petitioners”), being allottees of flats developed by Tamil Nadu Housing Board (“the Respondent”) under real estate projects in Nandanam and Anna Nagar Divisions, Chennai, had paid the full flat cost as per the advertisement issued by TNHB, which clearly stated that the price was ₹9892/sq.ft., inclusive of GST.
Despite this, after handing over the keys and issuing the completion certificate in April 2024, the Respondent issued a letter dated August 16, 2024, demanding an additional 5% of the total sale consideration as GST from each allottee, along with belated interest if any, before execution of the sale deeds.
The Petitioners contended that TNHB was estopped from raising such additional demand, especially when the agreed sale consideration was expressly inclusive of GST, and such terms were neither clarified nor contradicted in any subsequent agreements or communications. The Respondent argued that the 5% GST component now demanded was applicable now as the same was omitted at the time of advertisement. Aggrieved by the same, the Petitioners approach the High Court.
