Cancellation of the flat booking and the refund of GST by the Builder

Cancellation of the flat booking and the refund of GST by the Builder

There are various cases wherein the customers have cancelled the flat booking and the builder has not refunded the GST amount.

Here is a resolution in such a case,

There is a relief for both developers as well as customers which has been announced through circular 188/20/2022.

The refund claim can be filed by the unregistered persons only in those cases where at the time of cancellation/termination of agreement/contract for supply of services, the time period for issuance of credit note under section 34 of the CGST Act has already expired.(i.e after 30th September of the financial year end in which goods or services were offered/31st December-Annual return filing date-whichever is earlier)

Time limit to avail the refund would be 2 years from the date of cancellation of booking.

The copy of the circular is as under:

Cancellation of the flat booking and the refund of GST by the Builder