- If a buyer cancels deal to buy a house under construction
- Experts advice to the government
Experts have been suggesting that if a person cancels buying of a house under construction, the government is urged to refund the GST paid by the buyer.
The 48th GST council at its meeting noted that there was no system in vogue if the deadline for issue of a credit note expired following cancellation of purchase of a house or flat. Consequently, there was no practice of returning the GST paid by the buyers not registered with the GST regime.
Many buyers belong to a category whose names are not registered with the GST regime. Under such a scenario, the state government is urged to take steps to refund the GST amount paid. For example, a person on March 31 bought a home paying Rs 1 crore. He also paid Rs 5 lakh towards the GST. But, he cancelled the purchase agreement on December 17. The deadline for issue of a credit note expired on Nov 30. Therefore, the amount paid by him towards the GST would not be refunded as per rules. That is why the experts suggest in such a scenario the government should take steps to refund the GST.
