🧾 Lost GST in a Cancelled Property Deal? Seafarers Can Get GST Refund – Here's How!

Dear Seafarer, ️

We understand the unique life you live — months away at sea, working hard to secure a better future for yourself and your family. Many of you choose to invest your savings in real estate back home , hoping to build something lasting. But what happens when a property deal falls through and you lose money on taxes like GST?

Here’s something you need to know

In many property deals, especially during construction, the builder collects payments in stages — these are usually considered advances. Since construction often takes more than 3 months, these payments fall under what’s called a continuous supply of service.

Sometimes, due to delays, disputes, or change of plans, the agreement gets cancelled. Now here's the problem — if too much time has passed, the builder is not allowed to issue a GST credit note (that’s like an official tax refund note). This means the GST amount you paid is stuck with the builder, even if the rest of your money is refunded.

This is where you have the right to claim a refund directly from the government – and yes, even if you are not registered under GST, you are still eligible!

 When Can You Claim a Refund?

You can claim a GST refund if all these conditions are met:

• You paid GST to a builder while buying a property under construction.

• The deal was later cancelled (by mutual agreement or otherwise).

• The builder did not refund the GST because the legal time limit to issue a GST credit note had already passed.

 What’s the Time Limit to Apply?

You must apply for the refund within 2 years from the date the builder issued the cancellation letter or agreement termination.

 Minimum Refund Amount

Refunds are only allowed if the GST amount is ₹1,000 or more.

 How Much Refund Can You Get?

You can claim only the GST that the builder deducted and did not return to you.

At SeafarersTax.Org, we are a team of experienced Chartered Accountants and Lawyers who specialize in handling taxation matters for Indian seafarers. We understand your challenges and can help you apply for this GST refund hassle-free.

From documentation to filing the application, we’ll handle everything for you — so you can stay focused on sailing ahead .

 Need Help or Have Questions?

Reach out to us anytime – we’re here to support you every step of the way.

Wishing you smooth seas and strong savings,

Team SeafarersTax.Org