Homebuyer entitled to refund of GST paid on cancelled flat booking where builder could not issue credit note; Circular 188/20/2022 binding and claim within limitation: GSTAT Dehradun

The Tribunal held that a flat buyer who bore the incidence of tax is the ultimate consumer, so unjust enrichment does not arise, and directed refund of Rs. 4.32 lakh with interest.

The Goods and Services Tax Appellate Tribunal, Dehradun Bench, has directed refund of Rs. 4,32,225 to a homebuyer who cancelled her flat booking, setting aside orders that had rejected her claim filed under the category of refund for unregistered persons [Priyaja Dhondiyal v. Commissioner, CGST Dehradun & Ors].

The Bench of Naresh Katyal (Judicial Member) and Amand Shah (Technical Member) noted that the developer refunded the basic price on cancellation but not the CGST and SGST already deposited, as the time limit for a credit note under Section 34 had lapsed. The ledger maintained by the developer showed that tax had been paid, and the conditions of Rule 89(2), including Statement 8, were met.

On limitation, the Tribunal reckoned the cause of action from the termination of the tripartite arrangement and applied the exclusion of 01.03.2020 to 28.02.2022 under Notification No. 13/2022-Central Tax. It also noted that the claim could not have been filed before Circular No. 188/20/2022-GST prescribed the procedure for such buyers, and that the Department itself had asked her to file under that circular.

Holding that the buyer was the ultimate consumer, the Tribunal ruled out unjust enrichment and ordered refund with interest from 60 days after the claim was filed on 09.03.2023.

2026-juristway.com-3008-GSTAT(Dehradun)-GST  |  GSTAT, Dehradun  |    14.10.2026