The Goods and Services Tax Council has approved a formal procedure for home buyers to seek refund of taxes collected by real estate firms under cancelled contracts.

“There is no procedure for claim of refund of tax borne by the unregistered buyers in cases where the contract or agreement for supply of services, like construction of flat or house and long-term insurance policy, is cancelled and the time period of issuance of credit note by the concerned supplier is over,” said an official statement after the council’s meeting on Saturday.

The Council recommended amendment in CGST Rules, 2017, along with issuance of a circular, to prescribe the procedure for filing application of refund by the unregistered buyers in such cases.

Source: The Financial Express
https://www.financialexpress.com/economy/home-buyers-can-seek-gst-refunds-if-contract-cancelled/2918688/