Rajesh Gupta 23 March 2018

Paid service tax(june 2017), need refund in gst(jan 2018)

I booked a flat in June 2017 with booking amount 3.25 Lakhs. But in Jan 2018, deal went off due to some reasons.
Now, when I went for refund of the booking amount, builder said "they have paid 1.30 Lakhs as service tax (45% service tax of total property price). And this amount is not refundable in GST regime."

While going through internet, I found that in GST, service provider can issue a Credit Note in case of cancellation to refund the service tax paid. (But I am not sure if this information is correct.)

Kindly let me know, how can I get the service tax refunded.

Thanks in advance.

Reply Follow

1 Replies

Yusuf Rampurawala 03 April 2018

since deal is cancelled, you can simply approach the service tax authority for refund. but first ask the builder to give you proof that they deposited the service tax with the authority. if builder has paid that amount towards service tax and the deal is cancelled by you and not by the builder, then builder is not liable to refund the service tax paid by him. he can only lend you co-operation in the matter. you will have to pursue the matter with the concerned tax authorities