Hi, I had cancelled a flat booking around 3 months back. As per booking form, as my cancellation was before issue of allocation letter, I am eligible for refund. After few follow ups, builder is giving the refund but they are saying, GST has been paid by them so that will not be refunded. So our of 5 Lakhs, Rs 53000 is deducted by them. Booking form has a mentioned that booking amount will be refunded in 30 days. I am getting refund after 3 months. Questions is, how can I get that GST amount back? I believe there should not be any GST on cancelled booking? If I take the cheque from builder and sign the letter that I got refund, I have no claim on GST amount I believe. Pl suggest if I can get that back from GST authorities or say adjust in future if i buy a flat. Project is rera registered.
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GST is applicable on advance received from customers for flats booking. considering the issue, the builder would have followed the same rule and paid GST to govt by filing 3B return.
builder can refund the said GST if he wants to under section 34(2) of CGST
It appears that the builder will seek a refund of this 53k from Tax Authorities in the form of Input Tax Credit.
Call upon the builder to process full refund of 5 lacs in your favour.
In case he denies, approach RERA.
1) Kindly ask Invoice to builder that he has paid amount to GST on the flat which was booked by you.
2) It can't get adjust from one builder to another , but it can be get adjust from that particular flat or you have opened GST number then that can be linked.
3) First you get the Invoice number of GST paid by builder.
If the booking is cancelled, you can claim the refund of GST deposited with the govt in terms of section 54 of GST Act.
Dear Client,
You have these options - Consumer court, RERA and criminal complain.But depends on the reason of withdrawal.
GST not payable once deal cancelled but withdrawal without builder builder default , he can deduct 10 % amount.
Why you cancelled the booking. Further without executing agreement to sell, builder cannot take more than 10% in advance.
Please be aware that GST is not refundable in case of cancellation of your property as the GST amount has already been accounted for unpaid to the government in case of cancellation only your principal amount is returned by the Builder depending upon your terms and conditions with the Builder
1. Yes, the GST is not be paid on the amount which is to be refunded.
2. Since the booking is cancelled the builder will get back the amount once he show the refund.
3; As builder has made this payment , it alone can ask for this refund and nit you.
4. So you are entitled to full refund and if the builder does not pay the full amount then you can file case before the consumer forum and get full refund along with damages and compensation.
You collect the details of the payment of GST by the builder to the government.
Let him furnish the details after which you can ask your auditor to file for refund of GST on the basis of the reliable information that you rely upon for refund of GST.
GST can be refunded as the same can be adjusted by the builder by the other ways. Tell him to give the same in writing and then you can approach the RERA or consumer court for the gst refund
You have to claim the gst from the gst authority
Ask builder to provide you proof that he deposited the gst that he collected from you, with the government
Use that proof and the cancellation letter for claiming gst refund
