GST adjustment/refund

[Chaitanya Smaran]

I had booked a house and the builder has raised an invoice in march 2019 and they paid GST to Government in March 2019. Later I did not like the house and decided to cancel in October 2019, now the builder is saying that he cannot refund the amount because he has already paid the GST in March 2019 and they could have claimed for a refund only before September 2019. That house was later sold to another individual and the builder is saying that they have paid the GST again for the same house. Please advise how I can get back the amount.

[KASTURI SETHI]

Refund can be claimed within two years from the date of payment of tax under Section 54 (1) read with Section 54(8) (c) & (e) of CGST Act. Either you or builder can apply for. If you apply for refund claim, you will get disclaimer certificate from the builder and attach with the refund application.

[Venkataprasad Pasupuleti]

Yes. I endorse the views of Mr. Kasturi, either of you or builder can go for refund.

[Pavan Mahulkar]

If You are unregistered under GST, Builder can't claim the refund...It will be the case of unjust enrichment..

Nor you could claim it, it will be credited to consumer fund...

[KASTURI SETHI]

If buyer claims refund claim, no issue of unjust enrichment.

[Pavan Mahulkar]

If buyer is ultimate unregistered Consumer,

He Can't claim refund...

[Venkataprasad Pasupuleti]

Registration is not a prerequisite for claiming refund. Developer shall return the GST amount to the buyer and then apply for refund, then there would not be a unjust enrichment. Alternatively, buyer can claim refund directly.

[KASTURI SETHI]

Yes. This method is full of legal force and has more practicability.

[Chaitanya Smaran]

Thank you Sir,

If I have to claim the refund please advise the procedure.

[KASTURI SETHI]

Procedure is laid down in Board's Circular No. 125/44/2019-GST, dated 18-11-2019. You are to obtain disclaimer certificate from the builder and the same is to be attached with the prescribed application FORM-GST-RFD-01under Rule 89(1) of CGST Rules.

[Chaitanya Smaran]

Sir, Iam an individual and not registered in GST. The circular says that we have to apply for refund through GST portal only. Can I register now and then apply for refund?

[KASTURI SETHI]

Visit the office of jurisdictional GST Range Officer for filing refund claim manually.

AI Summary

GST refund rights on cancelled property bookings: buyer or builder may claim refund with disclaimer certificate. Refund of GST paid on a cancelled property booking can be claimed either by the buyer or the builder if supported by a disclaimer certificate to prevent unjust enrichment; the claim must be filed within the statutory refund period and submitted with the prescribed refund form under the CGST rules. An unregistered buyer who cannot apply through the GST portal may file the refund claim manually at the jurisdictional GST range office, attaching the disclaimer certificate as required by the Board circular.