• Refund on cancellation due to possession delay

Dear Sir,
We have booked a property in Bangalore which is registered RERA project and as per the terms and conditions of the sale agreement, the handover date was 31st March 2019. 
However we are expecting a delay on the handover by builder and I want to look for cancellation of the sale agreement and go for the refund. 
In this case, wanted to confirm if the GST amount will also be refunded by the developer?
The agreement says taxes will not be refunded.
Asked 6 years ago in Property Law
Religion: Hindu

3 answers received in 2 hours.

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13 Answers

You can cancel booking on account of delay in delivery of possession 

 

2) builder woukd not refund GST in event of cancellation of booking 

Ajay Sethi
Advocate, Mumbai
99806 Answers
8147 Consultations

Yes you will get the entire refund along with the compensation under rera

Prashant Nayak
Advocate, Mumbai
34531 Answers
249 Consultations

1) If the amount is already paid by builder to government for GST charges, ask builder to provide receipt and get credit note from him at the time of cancellation deed.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

1. Yes, GST amount as well is liable for refund .

2. However since such fund is lying with the Government it would take time to get refund and the developer has not much control over the time of ts refund.

3. if the delay in possession is not much you can remain in the project as legal dispute takes time to get resolved. 

Devajyoti Barman
Advocate, Kolkata
23655 Answers
537 Consultations

The GST amount paid is non-refundable the builder shall not refund same.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Hello,

NO, the GST cannot be refunded but rest of the amount has to be refunded by the builder .

Regards.

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

Dear Sir,

Usually taxes paid may not be refunded but if RERA orders for it then the developer has to pay such amount from his pocket. Please see the following.

=========================================================================================

RERA   

List of judgement by RERA KARNATAKA

https://rera.karnataka.gov.in/getComplaintDetailsHomePage

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

The refund is full along with interest. The gst amount is also refundable.

Regards 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Dear Sir,

No you will not get the GST refund. 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. 

Following examples make you clear.

Cancelling an apartment booking?

Saurabh from Bangalore booked an apartment in January 2014 after taking a home loan from a well known bank. However, now he wants to cancel the booking and is ready to bear the necessary monetary loss. He wrote to Magicbricks.com enquiring about his available options while cancelling the booking? 

Buyers like Saurabh, who due to various reasons, are forced to cancel their booked property. However, the path to booking cancellation is unfamiliar to many. 
Sometime issues such as delayed project and exuberant cancellation fees being charged by builders are faced by such buyers. 

Following are some circumstances that buyers can identify and their solutions with while cancelling their booking. 

Asha Nayar Basu, partner, S Jalan & Co, a legal firm in response to Saurabh's query says, "Carefully go through the sale/ allotment agreement on the clause pertaining to cancellation of the booking. It will be as per the agreement. Some ag .. 
There are others who did not sign any agreement or did not have a clause of cancellation of the agreement. Take for instance Dharmesh, who entered into an agreement for an under construction flat. His agreement had no provision for cancellation. In such cases Basu advices, "In case there is no clause for termination or cancellation, you can cancel the same on certain grounds of impossibility to perform the same, which can be made out from the agreement. However, if the agreement is cancelled on  .. 

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

Dear Sir,

 

- Kindly share if the handover date shared is including grace period or without grace period of original time-line only.

- Generally Builders are now days prompt on filing GST due to strictness by Govt. for which you can avail credit note

 and file for refund.

 

 

Regards

 

Vivek Arya

Retired Lawyer
Advocate, Gurgaon
767 Answers
6 Consultations

We have to see the Builder-buyer agreement and the sub clauses involved in it. Thereafter based on the present developments of the flat you have a remedy under the concerned District Forum. Even though recent time the Builder is made more accountable and in many cases he is asked to pay for the unnecessary delay caused in very rare circumstances only you could get back your money. But what can be assured is hefty fine for the delay caused and the possession of the flat with the time bound manner is possible

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Invalid cause. Absolute refund with GST.

Yogendra Singh Rajawat
Advocate, Jaipur
23082 Answers
31 Consultations

If you want to cancel the booking for the reasons that the project is delayed inordinately, you can send the communication in writing by registered post to the builder and seek refund of the same with interest.

However the builder may deduct certain amount since it is you who voluntarily withdrawing your consent or cancelling the booking, also the GST amount may not be refunded.

You can approach RERA agaisnt the builder if there is any problem created by the builder in this regard

T Kalaiselvan
Advocate, Vellore
90000 Answers
2496 Consultations

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