Refund of GST paid by an unregistered person on the purchase of flat/units can be claimed by following the process as specified by the government. The following are the steps that need to be followed:
1. The buyer needs to submit a claim for a refund of GST paid on the purchase of flat/units in Form GST RFD-01 within 2 years from the date of payment of tax.
2. The application needs to be accompanied by supporting documents such as proof of payment of GST, copy of the invoice, copy of the agreement for sale, and any other relevant documents.
3. The buyer needs to ensure that the supplier has not availed of the input tax credit of the GST paid by the buyer.
4. The buyer also needs to ensure that he/she is eligible for the refund as per the provisions of the GST Act.
5. Once the application is filed, the GST department will verify the application and the supporting documents.
6. If the application and documents are found to be in order, the refund will be credited to the buyer's bank account.
It is important to note that the refund can only be claimed by an unregistered person who has paid GST on the purchase of flat/units. If the buyer is a registered person, he/she can claim input tax credit of the GST paid on the purchase of flat/units.
The following are the conditions to claim the refund of GST paid by an unregistered person on the purchase of flat/units:
1. The applicant must be an unregistered person who has paid the GST on the purchase of the flat/unit.
2. The GST paid should be eligible for a refund as per the provisions of Section 54 of the CGST Act, 2017.
3. The refund application must be filed in Form GST RFD-01 within two years from the relevant date.
4. The relevant date for the purpose of filing the refund application is:
Date of payment of GST, in case the payment is made after the issue of the completion certificate by the competent authority; or
Date of issue of the completion certificate by the competent authority, in case the payment of GST is made before the issue of the completion certificate.
5. The refund claim should not be less than Rs. 1000.
6. The original tax invoice issued by the seller of the flat/unit should be available with the applicant.
7. The applicant should not have collected any amount as tax from the recipient of the supply.
It is important to note that the refund of GST paid by an unregistered person on the purchase of flat/unit is subject to the fulfillment of the above-mentioned conditions.
The procedure to claim the refund of GST paid by an unregistered person on the purchase of flat/units is as follows:
1. The buyer needs to fill the FORM GST RFD-01 to claim the refund.
2. The application for refund needs to be filed within two years from the relevant date.
3. The relevant date is the date of payment of tax, whichever is later.
The buyer needs to submit the following documents along with the refund application:
a. A copy of the invoice or any other document showing the details of the payment made.
b. A declaration that the buyer is an unregistered person.
4. c. Any other document as required by the proper officer.
5. The buyer also needs to submit a declaration that the incidence of tax has not been passed on to any other person.
6. The refund claim will be processed by the proper officer and the refund amount will be credited to the buyer's bank account.
7. In case the refund claim is rejected, the buyer will be informed of the reasons for rejection and will be given an opportunity to file a revised claim.
It is important to note that the buyer must ensure that the seller has deposited the GST paid by the buyer to the government, failing which the buyer will not be eligible for the refund.
1. What is the refund of GST paid by an unregistered person on the purchase of flat/ units?
Refund of GST paid by an unregistered person on the purchase of flat/ units is available as per Notification No. 4/2018-Central Tax (Rate) dated 25th January 2018, subject to certain conditions.
2. What are the conditions to claim the refund of GST paid by an unregistered person on the purchase of flat/ units?
The conditions to claim the refund of GST paid by an unregistered person on the purchase of flat/ units are as follows:
1. The claim for refund can be made only by the person who has actually paid the GST.
2. The person claiming the refund must not be registered under the GST Act.
3. The refund can be claimed only for the GST paid on the purchase of a flat/ unit, and not for any other input taxes such as stamp duty, property tax, etc.
4. The value of the flat/ unit should not exceed Rs. 45 lakh.
5. The person claiming the refund should be a resident of India.
6. The claim for refund can be made only once.
7. The claim for refund should be filed within two years from the date of payment of GST.
3. What is the procedure to claim the refund of GST paid by an unregistered person on the purchase of flat/ units?
The procedure to claim the refund of GST paid by an unregistered person on the purchase of flat/ units is as follows:
1. The person claiming the refund needs to submit an application for refund to the jurisdictional GST officer.
2. The application for refund needs to be filed in Form GST RFD-10.
3. The application for refund needs to be filed along with the following documents:
4. Proof of payment of GST.
5. Copy of the booking receipt/ agreement for the purchase of the flat/ unit.
6. Copy of the occupancy certificate or the completion certificate issued by the competent authority.
7. Any other document as required by the GST officer.
1. The GST officer will verify the application and the documents submitted and will either approve or reject the refund claim.
2. The refund will be credited to the bank account of the person claiming the refund.
8. Can the refund of GST paid by an unregistered person on the purchase of flat/ units be claimed for an amount less than the actual amount of GST paid?
No, the refund of GST paid by an unregistered person on the purchase of flat/ units cannot be claimed for an amount less than the actual amount of GST paid. The claim for refund should be for the full amount of GST paid.
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