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Refund of GST by Unregistered Person - In Case Contract with Builder is Cancelled

Updated: Feb 10

Do you know that in case you have paid upfront to the Builder the complete contract amount along with GST and thereafter the contract/agreement is cancelled then you can claim the refund of GST paid to the builder from Government.

Similarly, in case you have paid upfront for the insurance policies the premium for the entire tenure of the policy but the in-between policy is termination then in that case also you can claim a refund of GST paid on the policy for the unexpired period.

Procedure to GST Claim Refund by Unregistered Person:

1.The application for refund shall be filed in FORM GST RFD-01 on the common portal under the category ‘Refund for unregistered person’

2. The applicant shall upload statement 8 (in pdf format) and all the requisite documents as per the provisions of sub-rule (2) of rule 89 of the CGST Rules. The refund amount claimed shall not exceed the total amount of tax declared on the invoices in respect of which refund is being claimed

3. the applicant shall also upload the certificate issued by the supplier in terms of clause (kb) of sub-rule (2) of rule 89 of the CGST Rules along with the refund application. The applicant shall also upload any other document(s) to support his claim that he has paid and borne the incidence of tax and that the said amount is refundable to him.

Notes to Remeber:

  1. Refund can be filed only if the time period to raise credit note by the supplier (eg. Builder) has expired. The the period for issuance of a credit note as per Section 34 of the Central Goods and Service Tax (CGST) Act may have already expired by this time, i.e. earlier of 30th November of the following financial year in which the supply was made, or date of filing the annual return.

  2. In cases were time period has not elapsed , you can claim refund of GST directly from your supplier only i.e Builder and not need to file application to government for refund.

  3. Refund Application has to be filed within 2 years of cancellation of contract / agreement.

  4. Also, where the amount paid back by the supplier (Eg. Builder) to the unregistered person on cancellation/termination of agreement/contract for supply of services is less than amount paid by such unregistered person to the supplier, only the proportionate amount of tax involved in such amount paid back shall be refunded to the unregistered person


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