Flat Booking Cancelled? Claim Your 18% GST Back

If your flat booking was cancelled or your builder's project was terminated, you don't have to lose the GST you paid. UP RERA has confirmed buyers can claim that tax back — either from the builder or directly from the GST department.

Here's what happened: UP RERA has officially clarified that homebuyers are entitled to a full GST refund if their flat booking is cancelled or the project is terminated by the builder.. GST on under-construction property is typically 5% (affordable housing) or 12% on the base price — on a ₹50 lakh flat, that can mean ₹2.5–6 lakh paid in tax.. If the builder fails to refund the GST component, buyers can approach the GST department directly to claim it — the refund route does not solely depend on the developer..

What you should do: Dig out your booking agreement and payment receipts — locate every invoice where GST was charged separately by the builder.. Write to your builder formally requesting a full refund including the GST component, citing the RERA clarification as your legal basis.. If the builder delays or refuses, file a GST refund application directly at the GST portal (gst.gov.in) under 'Excess payment of tax' or consult a CA for the correct refund category..

Pro tip: GST refund claims have a 2-year time limit from the date of cancellation — if your booking was cancelled even 18 months ago, file now before the window closes.