Home buyers get relief! If the builder has collected more GST then now he will get full refund, RERA issued new instructions

Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has taken a big decision in the interest of home buyers. Now buyers from whom builders have collected GST more than the prescribed rate will be able to get its refund as per the prescribed procedure. For this, UP RERA has clarified the refund process in coordination with the state tax department.

UP RERA has instructed all registered real estate promoters and agents to strictly follow the GST rates fixed by the Central Government. The authority said that charging GST more than the prescribed rate in any project is against the rules.

What did UP RERA say?

• According to UP RERA, if a buyer has paid GST for a flat or building construction service and later the project is cancelled, the contract is terminated or the allotment is cancelled, then in some cases the buyer can directly claim a refund from the GST department.
• However, this facility will be available only in cases where the statutory time limit for issuing credit notes to the promoter has expired. If the deadline is left then the promoter will have to issue a credit note and return the amount including GST.
• To get the refund, the buyer will first have to do temporary registration on the GST portal on the basis of his PAN. After this, you will have to apply by filling FORM GST RFD-01 in the Refund for Unregistered Person category.
• Proof of GST payment, necessary documents and certificate issued by the promoter will also have to be submitted along with the application. If found eligible after scrutiny of documents, GST department will issue refund.
• According to the state tax department, refund can be claimed within two years from the date of cancellation or termination of the contract. At the same time, refund will not be available in cases of GST amount less than Rs 1,000.
• UP RERA has clarified that all promoters should completely follow the notified GST rates and should not collect additional GST from any buyer. If a case of charging excess GST comes to light, action will be taken to refund the amount to the buyer as per rules.
• UP RERA says that this arrangement will provide relief to home buyers, increase transparency in the real estate sector and ensure better compliance with GST rules.