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Return of GST and Stamp Duty after cancellation of Property
10 months ago
In May 2023, I entered into a sale agreement for an underconstruction property in Chennai. During the booking process, the builder verbally assured me that he would provide rental income after possession next year. However, after signing the sale agreement, the builder has reneged on his promise and is unwilling to agree to the rental terms and conditions. Consequently, I intend to cancel the sale agreement. According to the terms of my agreement, if I cancel within 45 days, I am eligible for a refund excluding taxes such as GST and stamp duty. I would like to inquire whether it is possible to claim a refund for GST and stamp duty when filing my Income tax return
A.Dear Client,
When a dispute arises between a Purchaser and Builder of property following the non-performance of a specific condition of sale agreement executed between both the parties, if he dispute is not settled amicably you may file a suit for specific performance against the Builder under S R Act before a competent Court before the cancelletion of sale agreement. However, when you opt for cancellation of the sale agreement as per the condition of said agreement while you are eligible for a refund of the booking amount excluding GST from the concerned authority following the compliance of standing procedures, you cannot get back the cost of stamp duty which is non-refundable as per the governing law of the State. Reach out to an Advocate for guidance and steps.
When a dispute arises between a Purchaser and Builder of property following the non-performance of a specific condition of sale agreement executed between both the parties, if he dispute is not settled amicably you may file a suit for specific performance against the Builder under S R Act before a competent Court before the cancelletion of sale agreement. However, when you opt for cancellation of the sale agreement as per the condition of said agreement while you are eligible for a refund of the booking amount excluding GST from the concerned authority following the compliance of standing procedures, you cannot get back the cost of stamp duty which is non-refundable as per the governing law of the State. Reach out to an Advocate for guidance and steps.
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A.Dear client,
Yes, it is possible to claim GST refund. Please follow the following steps:
Step 1: Submit details for getting a temporary registration on GSTN Portal
An unregistered person (for the purpose of GST) is required to generate temporary registration using the following navigation:
Services>User Services> Generate User ID for Unregistered Applicant
In this regard, the applicant would be required to be submit the following details:
Name as per Permanent Account Number ('PAN') and PAN number
State in which refund is to b ..
*Select the same State/UT where the service provider is registered, i.e., whose invoice refund is to be claimed
** Bank account must be in the name of applicant and the same is also used for income tax refund purposes
Step 2: Aadhaar Authentication and generation of temporary registration
The applicant would be required to undergo Aadhaar authentication. Once the Aadhar Authentication gets completed, the GSTN will give a temporary registration to the applicant.
Step 3: Submitting Refund Application
Now refund application in Form GST RFD-01 can be submitted under the category 'Refund for unregistered person'. An individual customer can file refund application within two years from the date of issuance of termination/cancellation letter by the service provider.
Step 4: Processing of Refund and passing refund order by the authorities
The authorities would process the refund application and pass the refund order and based on that order, refund would be paid to the applicant.
Yes, it is possible to claim GST refund. Please follow the following steps:
Step 1: Submit details for getting a temporary registration on GSTN Portal
An unregistered person (for the purpose of GST) is required to generate temporary registration using the following navigation:
Services>User Services> Generate User ID for Unregistered Applicant
In this regard, the applicant would be required to be submit the following details:
Name as per Permanent Account Number ('PAN') and PAN number
State in which refund is to b ..
*Select the same State/UT where the service provider is registered, i.e., whose invoice refund is to be claimed
** Bank account must be in the name of applicant and the same is also used for income tax refund purposes
Step 2: Aadhaar Authentication and generation of temporary registration
The applicant would be required to undergo Aadhaar authentication. Once the Aadhar Authentication gets completed, the GSTN will give a temporary registration to the applicant.
Step 3: Submitting Refund Application
Now refund application in Form GST RFD-01 can be submitted under the category 'Refund for unregistered person'. An individual customer can file refund application within two years from the date of issuance of termination/cancellation letter by the service provider.
Step 4: Processing of Refund and passing refund order by the authorities
The authorities would process the refund application and pass the refund order and based on that order, refund would be paid to the applicant.
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