• Builder deducting GST plus 10% cancellation charge

Mail set to Builder....

( I had Booked the 3bhk Area 1670 sqft on 30-4-2017 in I wing of Lodha.

72 lacs paid till 05 April 2018.

I am sorry to apprise you of the cancellation of my booking for flat in your Lodha I wing Flat no. 2206. I have carefully examined the terms and condition mentioned in the form while completing other formalities in your office. These conditions do not suit me and my present resources prevent me to deposit the remaining Amount which are beyond my approach. Because as per our discussion project completion date was given till mar 2020. On 9 May 2017 Email you have given Possession Date to Dec 2019 .I had given my source of funding was from own self funding .

I had also not received 2 major emails from your end about completion of .....
1. Completion of Terrace Flat
2. Completion of internal plaster & gypsum

From date 13th march 2017 you never intimated the progress of the construction, in the mean time after 2017 i did not received the above 2 mails stating the completion dates.
I only received email dated..6th Oct 2017 that flooring,windows carpentry work completed.

Becuse of early possession I can't pay the whole amount, as i had booked for possesion date Dec 2018.
The New possession date is too early for the amount to be raised.

It is, therefore, requested that my booking for the flat at Lodha I wing flat no.2206 may please be canceled with the return of my dues.

If any alternative solution is their other than cancellation will surely can have a discussion.

Your cooperation in this regard shall be highly appreciated.)


This letter sent on 27 Dec 2018 till now no 25 mar 2019 no answer by builder, they are telling GST will be deducted and also 10% cancellation charge.
mail was sent by builder but i have not registered the agreement till now, 
Building has received OC now.
Builder is giving option verbally that you can book in another wing but rate would be today's Date not the earlier.
so what the use of it my amount is unnecessarily blocked now.
3 months have passed when i sent the email no response.
Please reply sir
Asked 5 years ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

12 Answers

The allottee have the right to cancel/withdraw his allotment in the project .

Provided that where the allottee proposes to cancel/withdraw from the project without any fault
of the promoter, the promoter herein is entitled to forfeit 10% of booking amount for the allotment.
The balance amount of money paid by the allottee shall be returned by the promoter to the allottee
within 45 days of such cancellation.

3) if builder fails to refund your money file complaint against builder before RERA seek refund of balance amount with interest

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

GST paid would be deducted by builder 

Ajay Sethi
Advocate, Mumbai
94723 Answers
7535 Consultations

5.0 on 5.0

Dear Sir,

 

- You can seek GST Deduction certificate from Builder. Under Consumer protection act and GST Act, you can ask for same

- Incase he denies, you can submit your complaint to RERA for illegal demand to be considered as extortion. 

 

 

Regards

 

Vivek Arya

Retired Lawyer
Advocate, Gurgaon
767 Answers
6 Consultations

5.0 on 5.0

yes builders can charge applicable GST.

when it comes to matter of Cancellation charges,please check terms and conditions mentioned in the agreement of sale entered by you with the builder.If terms for cancellation are missing in the agreement ,then you can claim 100 % refund from the developer.In case builder is not ready to repay the amount even with a clause mentioned in the agreement,you can approach the RERA, if the project is registered under RERA act,or you can approach the consumer forum asking for a refund with interest.

I suggest you to seek the legal counsel advice from the local legal professionals before cancel an flat booking to avoid any glitches later on.

Seshukumar Kuchibhotla
Advocate, Hyderabad
57 Answers

5.0 on 5.0

GST is non refundable amount so an amount which is paid as GST will not be paid back to you but the deduction on cancellation will be based on your agreement with builder accordingly otherwise you can approach to the consumer forum /state consumer dispute redressal Commission or RERA as the case may be

Vimlesh Prasad Mishra
Advocate, Lucknow
6852 Answers
23 Consultations

4.9 on 5.0

Dear Client,

GST is not refundable if it is already paid by builder, Ask him to give you original receipt copy, if he not, you can claim GST too. 

And you are also not liable to any deduction as possession date was 2019 and early completion of construction, in no way can change the payment schedule. You are entitle to possession but payment on same terms.

And if builder not agree , 100% refund.

Yogendra Singh Rajawat
Advocate, Jaipur
22636 Answers
31 Consultations

4.4 on 5.0

See as per the booking and agreement on cancellation he can deduct the 10 percent amount and GST amount is non refundable.

Alternatively you can seek time from builder to pay the amount as earlier possession time and payment time was longer.

If you go for cancellation he can charge some amount.

 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Yes GST is paid to government and he cannot refund same.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

1. 10% cancellation charges are fine. It must be stated in your allotment letter

2. GST you have to recover from the government because the builder raises tax invoice charging GST from flat buyer and then he has to deposit the GST in government treasury

Yusuf Rampurawala
Advocate, Mumbai
7514 Answers
79 Consultations

5.0 on 5.0

You can file a Complaint with rera for refund you will get the entire amount as refund

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

You can send a legal demand notice to the builder through yor lawyer referring your previous letter on the same subject and a time for repayment may be stipulated in the notice so that you can approach consumer forum after that if the builder is not responding to the legal demand notice also.

You can claim full refund in the consumer case, let the court decide about it after hearing both the sides.

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

Let him give the details of GST paid to the government, you can claim refund from the government on the basis of cancellation of booking of the flat.

 

T Kalaiselvan
Advocate, Vellore
84925 Answers
2196 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer