Refund of GST on Advance - in case service not provided

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This query is : Resolved

Quick Summary

If you've booked a community hall and paid GST but cancelled before the service was provided, you should be eligible for a refund of the GST paid. Since no service was rendered, the provider shouldn't have to pay GST on it. You can request the supplier to issue a credit note to adjust their GST liability.

Virendra Chaturvedi

Virendra Chaturvedi (Querist)
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10 September 2021 I took community hall on rent from SDMC for 29 April 21
for which i paid service charge and GST
Due to Covid ,I canceled the booking and service was not provided
Now on asking of Refund they are deducting my whole amount of GST

Please suggest if service was not provided what is the applicability of GST ?
Why should I not ask for refund of full amount of GST .

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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10 September 2021 If there is an option for cancellation of service & refund of charges (this would depend upon the terms and conditions imposed by the community hall), then even the GST component should be refunded because if no service is provided, then the service provider is not required to pay GST on the same.

Udaya Chandran

Udaya Chandran (Expert)
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11 September 2021 Please ask the supplier to issue credit note and upload the same in GSTR 1 & 3B to reduce the GST liability with respect to the amount to be refunded. Then there is no issue for them.

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