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Homebuyers Get GST Refund Power from UP RERA
13 Jul
Summary
- Developers must adhere to official GST rates as per UP RERA.
- Homebuyers can claim refunds for excess GST collected.
- An online mechanism is available for refund applications.
The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued a clear directive for real estate developers to strictly adhere to the Goods and Services Tax (GST) rates notified by the Central Government. This mandate aims to protect homebuyers from any over-collection of taxes.
To ensure compliance, UP RERA has communicated applicable GST rates to all registered promoters and agents. A recent office order highlighted instances where homebuyers were charged higher GST than prescribed. This prompted UP RERA to consult with the State Tax Department to clarify refund procedures.
Homebuyers who have paid excess GST can now claim a refund. If a project is cancelled after the promoter's credit note period has expired, buyers can apply directly to the GST department. Refund claims are admissible for amounts exceeding one thousand rupees and must be filed within two years of agreement cancellation or termination.
