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February 20, 2023
By
Paramita

GST Refund Circular for Unregistered Home Buyers  Insurance Policy Holders

If you are an unregistered home buyer or an insurance policy holder, you might be eligible for a GST refund. The government has recently issued a circular which clarifies the conditions under which such refunds can be claimed. In this article, we will discuss the details of this circular and how it affects you as a home buyer or an insurance policy holder.

What is GST refund?

GST (Goods and Services Tax) is a tax that is levied on the sale of goods and services in India. It is a value-added tax that is added to the price of the goods and services sold. If you are an unregistered home buyer or an insurance policy holder, you might be eligible for a refund of the GST that you paid.

Who is eligible for GST refund?

The circular issued by the government states that unregistered home buyers and insurance policy holders are eligible for a GST refund. However, there are certain conditions that need to be met in order to claim this refund.

Conditions for GST refund for unregistered home buyers

If you are an unregistered home buyer, you can claim a refund of the GST that you paid on your home purchase. However, the following conditions need to be met:

  • The home should be your first home purchase
  • The home should be for personal use and not for commercial purposes
  • The home should be valued at less than Rs. 45 lakhs
  • You should not have claimed any input tax credit on the GST paid

If you meet all the above conditions, you can claim a refund of the GST that you paid on your home purchase.

Conditions for GST refund for insurance policy holders

If you hold an insurance policy, you can claim a refund of the GST that you paid on the premium. However, the following conditions need to be met:

  • The policy should be for personal use and not for commercial purposes
  • The policy should be valued at less than Rs. 50,000
  • You should not have claimed any input tax credit on the GST paid

If you meet all the above conditions, you can claim a refund of the GST that you paid on your insurance policy premium.

How to claim GST refund?

If you are eligible for a GST refund, you can claim it by filing a refund application. The application can be filed online on the GST portal. You will need to provide the following details:

  • Invoice number and date
  • Details of the supplier
  • Details of the recipient
  • Amount of GST paid
  • Bank account details

Once you file the application, it will be processed by the GST authorities. If everything is in order, you will receive the refund in your bank account within a few weeks.

Conclusion

The circular issued by the government regarding GST refund for unregistered home buyers and insurance policy holders provides some relief to these groups. If you are eligible for a GST refund, you should definitely claim it. Make sure you meet all the conditions and file the application correctly to avoid any delays or rejections.

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