Yes he can refund the said GST if he wants to under section 34(2) of CGST Act. He can issue a credit note and adjust the same
Is GST refundable on cancellation of residential apartment
I have booked a 3BHK apartment in Pune on 28August 2018. After paying the first installment + GST, I have decided to cancel the booking as of 22 Nov 2018 The builder has paid GST in the same month. The builder is saying that GST cannot be refunded. Is this true? Is there a clause in the GSt act that i can share with the builder that mandates him to seek GST refund from government and give it back to me?
Asked 7 years ago in Taxation
8 Answers
GST will not be applicable even on the booking amount in case of cancellation of booking. The transaction was cancelled. When the builder does not get any amount how can there be a tax.
Since the flat has been cancelled by you at your own will, the builder is not liable to refund the GST when the same has been paid by the builder.
Regards
Cancellation charges are usually mentioned in the builder-buyer agreement. So, if you have signed such a contract, read it carefully to find out how much money you are liable to be refunded. If terms for cancellation are missing then 100 per cent refund can be claimed from the developer. In case a developer refuses to repay the booking amount even with a clause present in the agreement, the buyer may file a case with the consumer forum asking for a refund with interest.
No you will not get the GST refund.
you need to take proof from builder that he paid the GST to the government which you had paid to builder alongwith 1st instalment
once you cancel the booking, the builder is liable to refund your booking amount after deducting agreed penalty charges
however since the builder would have already deposited the GST amount with the government, the builder is not liable to obtain refund of that GST
For the refund you will have to make an application to the GST Council seeking refund as your booking is cancelled
Builder can claim gst by making credit note of cancelled sale
If you have any document in which gst is mentioned or charged you may get refund but go through the condition of booKing
The GST paid to the government, if a refund is required to be claimed the same can be done by filing relevant refund related forms. Usually when the GST paid is more than the GST liability a situation of claiming GST refund arises. The process is online and time limits have also been set for the same.The time limit for claiming a refund is 2 years from relevant date.
The refund application has to be made in Form RFD 01 within 2 years from relevant date.
The form should also be certified by a Chartered Accountant.
