LUCKNOW: The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has issued fresh guidelines to protect homebuyers by clarifying the process for claiming refunds of excess Goods and Services Tax (GST) collected by real estate promoters. The move follows reports that some allottees were charged GST at rates higher than those prescribed under govt notifications.UP RERA said promoters registered with the authority must collect GST strictly at notified rates. It recalled that instructions on applicable GST rates had already been issued through an office order dated Jan 8, 2025, and shared with registered promoters and real estate agents.In consultation with the State Tax Department, the authority has outlined a mechanism for homebuyers to seek refunds in cases where projects are cancelled, agreements are terminated, or allotments are cancelled after the statutory deadline for promoters to issue a GST credit note has expired.Eligible unregistered allottees must first obtain temporary registration on the GST portal using their Permanent Account Number (PAN). They can then submit a refund application through FORM GST RFD-01 under the category “Refund for Unregistered Person”, along with proof of tax payment, supporting documents and a certificate from the promoter. Refunds will be processed after verification and subject to GST provisions.The guidelines specify that promoters must issue credit notes and refund GST where the statutory time limit permits. Independent refund applications are required only after that period has expired. Refund claims must be filed within two years of cancellation or termination of the agreement, while claims below Rs 1,000 will not be entertained. UP RERA has directed promoters to ensure strict compliance with notified GST rates and applicable tax rules.
