After the change in GST rules, it has become easier for you to do so. According to this, if the customer has paid any unnecessary tax, then he himself can withdraw the tax amount by visiting the GST portal.
You can easily get back the GST paid in lieu of cancellation after you have booked a booking to buy a house from a builder. Apart from this, even after canceling the insurance policy, you can get GST refund in a fixed proportion. Refund facility was also available for the last financial year.
According to this, if the customer has paid any unnecessary tax, then he himself can withdraw the tax amount by visiting the GST portal. Generally, the builder takes GST on the entire amount of the flat as soon as the Karat is done after buying the house. The GST on real estate is five per cent.
Generally, if the customer cancels the contract with the builder after 11 months of booking, the builder will refund the booking amount but will not refund the GST. With the implementation of the new rule, the customer can take GST refund anytime in two years after the cancellation of the booking. For this you do not even need to have a GST number. You can apply for refund through temporary registration on GSTN portal. You can do this work online even sitting at home.
What is special about the new facility
- It was not possible to get GST refund without GST registration
- If canceled after buying an insurance policy, you can also get GST refund
- You can get a refund for any kind of service that you have not used
- GST refund of the previous financial year was not available under the old rules
- In December last year, the government changed the rules
First temporary registration required
If you do not already have a GST registration, first of all you have to do a provisional registration on the GSTN portal (https://www.gst.gov.in/). For this, first click on Portal Services. After that go to User Services and then click on Generate User ID for Unregistered Applicant. After filling all the details, Aadhaar verification will be done. After this, a temporary registration is given to the applicant by GSTN.
Fill application like this
Refund application has to be filled after provisional registration. For this, Form GST RFD-01 has to be filled and submitted in the category of Refund for Unregistered Person. In this, the agreement with the service provider on the GSTN portal, documents related to all payments made to him and the certificate of cancellation of service will also have to be submitted. Along with this, a certificate will also have to be submitted by the service provider that he has deposited the GST collected from you with the government and has not claimed any refund or adjustment. After all the process is completed, a refund order will be issued by the GST authority after processing your claim. Based on this, your respective account refund amount goes.
Need to provide these details
- Name and PAN number for temporary registration
- Name of the state in which refund is required
- Applicant’s address, bank account details. Here give the same bank account which you use for income tax refund.
- Aadhaar details also have to be given and verification is done through that only.
This is the procedure in canceled insurance policy
GST is levied at the time of buying an insurance policy, which is 18 per cent. If you cancel it immediately after purchase, you can take back the GST. Apart from this, if you bought the policy for 10 years and surrendered it within five years, then you can take a refund of the GST paid for the remaining period. This was not possible before December 2022.
