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GST refund for cancellation of under construction flat

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Anand

25 Points Posted on 29 December 2023

Dear Sir,

I had purchase an under construction flat from a builder in June 2022. While purchasing the flat, I paid applicable GST as flat was under construction.

Now I have option to upgrade the flat into a bigger one from builder. Builder is advising me to cancel the old agreement and make a new agreement for the new flat. Only difference in price, he is requesting.

The building has recently received OC from the authorities and GST is not applicable for the new flat.

Query is :

1. Whether I can claim refund of paid GST post cancellation of the old agreement with the builder, as there is not transfer of goods / services.

2. If yes, what is the procedure to claim refund for this GST?

Thanks

Replies (5)

Quick Summary

This discussion explores the possibility of claiming a Goods and Services Tax (GST) refund after cancelling an agreement for an under-construction flat. The user purchased a flat in June 2022, paid GST, and is now considering upgrading to a larger flat by cancelling the old agreement. The builder has received the Occupancy Certificate (OC), making the new flat exempt from GST. The core query is whether the GST paid on the original flat can be refunded, as there's no transfer of goods or services, and if so, what the process entails. Advice suggests a refund is possible, referencing a specific GST circular, and offers assistance with the refund process.

Sharath chandra

Accountant

688 Points Posted on 29 December 2023

1. are you registered with gst ? what is the date of cancellation of agreement?

you can claim refund of gst.

we help in
getting the refund from the gst department wrt the cancelled flat. it's quite a lengthy process. please connect if you would like to take our services regarding the same.

Anand

25 Points Posted on 29 December 2023

Originally posted by : Sharath chandra
	1. are you registered with gst ? what is the date of cancellation of agreement? you can claim refund of gst. we help ingetting the refund from the gst department wrt the cancelled flat. it's quite a lengthy process. please connect if you would like to take our services regarding the same.

No. We are not registered with GST. WE haven't cancelled the agreement yet. Currently deliberating on cancellation. If at all, it will be Ja 24 i.e. < 2 years of registering the agreement with the builder