Decided 14 October 2026. A homebuyer whose flat booking was cancelled has won a refund of ₹4,32,225 of GST from the Dehradun Bench of GSTAT, along with interest. The Tribunal held that the claim, filed under the procedure in CBIC Circular No. 188/20/2022-GST, was within time and that there was no question of unjust enrichment because the buyer was the final consumer.
Case at a glance
| Case | Priyaja Dhondiyal v. Commissioner, CGST Dehradun & Ors. |
| Forum | GSTAT, State Bench Dehradun (Division Bench Court I) |
| Appeal No. | APL/18/DHR/2026 |
| Date of order | 14 October 2026 |
| Refund | ₹4,32,225 (CGST ₹2,16,112.50 + SGST ₹2,16,112.50) with interest |
| Key provisions | Section 54 CGST Act; Rule 89(2); Circular No. 188/20/2022-GST dated 27.12.2022 |
| Result | Appeal allowed; refund with interest from 60 days after 09.03.2023 |
Facts of the case
The buyer booked a flat with a developer under a construction-linked plan, paying ₹36,01,875 towards the flat and ₹4,32,225 as GST, which the developer deposited with the government. The agreement was later cancelled and the developer returned ₹35,03,400, but not the GST.
She raised a grievance on the CM Helpline on 23.05.2021. The department wrote on 17.01.2023 asking her to file a refund claim under Circular No. 188/20/2022-GST. She filed RFD-01 on 09.03.2023, but it was rejected as time-barred and the rejection was upheld in appeal on 24.04.2025.
Issue before the Tribunal
Can an unregistered homebuyer claim refund of GST paid on a cancelled booking, and was the claim within the limitation period?
What the Tribunal held
- Circular No. 188/20/2022-GST lays down the procedure for unregistered buyers to claim refunds in such cases. It applies squarely and is binding on the department.
- The buyer could not have filed the claim before the circular was issued on 27.12.2022; she did so after the department itself asked her to. The claim was within time.
- The developer's ledger showed that GST was paid, Statement 8 details were on record and the conditions of Rule 89(2) were met.
- As the buyer is the ultimate consumer who bore the tax, there is no unjust enrichment. The refund was ordered with interest from 60 days after 09.03.2023.
Practical takeaways for taxpayers
- Homebuyers who cancel a booking and do not get GST back from the builder can claim it from the department under Circular 188/20/2022-GST using the portal's unregistered-person route.
- Collect the allotment letter, agreement, GST receipts, builder's ledger and cancellation letter before filing.
- The two-year limit under section 54 applies to such claims, so file as soon as the booking is cancelled and the builder refuses to return the GST.
Frequently asked questions
Can a homebuyer get GST refunded if the flat booking is cancelled?
Yes. Under Circular 188/20/2022-GST, an unregistered buyer can claim refund of GST paid if the builder cannot issue a credit note, for example because the time limit under section 34 has passed.
Is interest payable on such a refund?
The Tribunal ordered interest from 60 days after the refund application.
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This summary is based on the order of the GST Appellate Tribunal, State Bench Dehradun in Appeal No. APL/18/DHR/2026. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.