Refund Of Service Tax Paid on Construction Services in Service Tax Regime and Booking Cancelled in GST Regime

[Anand Desai]

Dear Experts,

We have collected and paid Service Tax on Construction Services rendered in Service Tax regime and now customer has canceeled the booking after implementation of GST. Now What are the remedies available to me to get Credit/Refund of such Service Tax already paid?

[DR.MARIAPPAN GOVINDARAJAN]

You may file refund application with the required documents in support of the cancellation of the invoice and also the payment of service tax by you, the date of payment etc., within the limitation period in the prescribed form.

[Rakesh Chitkara]

Yes, all the above as suggested by Govindarajan Sir. Try and make the customer apply instead of the builder. It would be difficult to cross the hurdle of unjust enrichment by the builder whereas the customer doesn't have to explain this. Be prepared to get rejection at first stage as per usual practice in the Department. Write that the matter be decided only after passing of a speaking order after issuance of a SCN and observance of principles of natural justice. They are more likely to return the application as it is without making elaborate efforts by simply pointing out deficiencies.

[KASTURI SETHI]

I concur with the views expressed by Sh.Chitkara, Sir.

[YAGAY and SUN]

Provisions of Section 11B shall be applicable.

AI Summary

Refund remedies for service tax on cancelled construction bookings require filing refund applications and following procedural compliance.
File a refund application in the prescribed form with documentary proof of invoice cancellation, payment of service tax and payment dates within the limitation period. Prefer that the customer apply to avoid an unjust enrichment objection against the builder. Anticipate initial administrative rejection; request adjudication by way of a speaking order only after issuance of a show cause notice and observance of principles of natural justice. Relevant refund procedure provisions apply.