Refund Of GST On Cancellation Of Flat | Vkeel - Free Legal Advice

Sunil

Gurgaon

I booked an under construction flat in Gurgaon in Feb 2019 at a total price of 1.15 Cr. and paid initial amount of 11 Lakh to developer as a token money. The flat was ready to move in Dec 2019 and I was informed by the builder to deposit balance amount and take possession. I took 3 months time from builder for possession but meanwhile the covid 19 pandemic started. During the lockdown period, Builder kept chasing me for balance payment. As I did not have readily available fund to pay, the builder has cancelled the deal in Aug 2020. On my request to refund my money citing a long term relationship with the builder, they wish to support me by not imposing any cancellation charges but since they have paid GST on full amount (total Price of flat) @12% and the same can not be recovered from Government. I want to know is there any law in GST regime which supports buyer to get GST refund from builder who in turn is allowed to avail credit adjustment from the tax department.

Expert's Answers(2)

Advocate J L Naagar
Jalandhar, Punjab

169 Client Ratings

Since the amount of GST was paid by the Builder thus, he alone can apply and/or adjustment of the same. Being having GST No. in the name of his firm. You are legally entitled to get the refund from the Builder. In case of any dispute you may approach the Consumer Court for refund with interest and costs as well. Please give me Rank Five and follow me after reviewing my resume and book a consultation for further discussion and explanation if required.

January 30, 2021
Advocate Anik
Bengaluru, Karnataka

66 Client Ratings

Hi, Builders will have to refund GST paid by home buyers in case he cancels the flat booked in the last fiscal and will be allowed to avail credit adjustment for such refunds, the tax department has said. However, more clarifications are regarding the facts of the case, so that we can advice you properly. If you find this answer helpful, please rate us.

January 30, 2021