Refund of GST paid erroneously

[Ethirajan Parthasarathy]

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.

AI Summary

Refund of erroneously paid GST can be claimed and returned to affected purchasers; unregistered buyers may apply directly.
Refund is available for GST paid on sale of developed plots where tax was collected or remitted by mistake; such amounts are not lawfully retainable and must be claimed within the statutory time limit. Issues of unjust enrichment and possible routing of refunds to a consumer welfare fund arise when tax has been passed to customers. End-consumers who bore the cost may apply for refund directly and registered suppliers may assist; administrative changes are recommended to allow unregistered buyers to claim once portal procedures are updated.