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Gst refund for cancellation of property deal

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Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2018 I booked a flat and have paid gst to builder in his account. However I cancelled this flat deal. Builder is denying gst refund saying it is with the government. I would like to know can I get refund of gst paid to builder?or can builder get refund from government? If yes, is he liable to pay me back?

Rajesh Kumar

Rajesh Kumar (Expert)

04 December 2018 Yes, he is liable to refund the amount. In this particular case a service was required to be provided, for which payment is done and GST was paid. Now the service is not being provided, and hence he shall need to refund the amount [credit note]. When such note is issued, the tax liability of the builder is decreased in the month when such note is issued. In view of this the builder is required to refund the amount.

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