As per Circular No.177/09/2022 dt:03/08/2022, it is clarified that no GST is attracted if plots are sold after completing development works. In many cases, layout developers have collected and remitted GST on sale of plots done even after development.
Similarly there are instances that layout developers have paid GST after receipt of notice from GST dept. even for sale of developed plots.
Is there any provision claiming refund of GST erroneously paid due to wrong understanding of Law.
Refund for Erroneously Paid GST on Developed Plots: Section 54 and Consumer Welfare Fund Considerations A discussion on a forum addressed the issue of erroneously paid GST on developed plots, which should not attract GST as clarified by a circular. The main query was whether there is a provision for claiming a refund of such GST. It was suggested that refunds can be claimed under Section 54 of the CGST Act, but concerns about unjust enrichment were raised, as the tax was collected from customers. Some responses indicated that the refund should be credited to the Consumer Welfare Fund (CWF), while others suggested end-consumers could directly apply for refunds. The 48th GST Council Meeting recommended allowing unregistered persons to apply for refunds. (AI Summary)
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