Is GST refundable?

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If you've cancelled a house booking and paid GST, you may be entitled to a refund. The builder should issue a refund voucher for the GST amount paid. This is particularly relevant if the builder resells the property after obtaining the Occupancy Certificate, as GST would not be applicable on that subsequent sale.

Salil Kadne

Salil Kadne (Querist)

09 December 2020 Hi I bought a house in June 2017 of 1.14 Cr, registered in Oct 2017 and paid SDR 6.23 Lakhs, GST 12 Lakhs paid in Sep 2017. Cancel the booking due to inability to pay balance amount. Cancellation registered in Jan 2019. Builder says GST amount is not refundable. I doubt his statement. please can you confirm if GST is refundable to me completely?. Is there any process by which i can initiate a refund just like stamp duty? Thanks in advance for any help.

Lekhraj sood

Lekhraj sood (Expert)

09 December 2020 GST is refundable to you. Builder should issue Refund Voucher to pay back advance with GST to you.

Salil Kadne

Salil Kadne (Querist)

09 December 2020 Thanks lekhraj, Can you please provide some legal supporting for your answer which i can send to the builder to validate the point.

Salil Kadne

Salil Kadne (Querist)

09 December 2020 Also 1 more question Sir, What happens if builder resells my flat after OC is received as GST is not applicable then

Lekhraj sood

Lekhraj sood (Expert)

09 December 2020 Please refer rule 51, it mentions the GST amount therein as well.
In case of subsequent sale , gst will not e levied by him since its after completion.

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