The Maharashtra Real Estate Appellate Tribunal (MREAT) ruled that homebuyers cannot claim refunds of GST, TDS, stamp duty, or registration fees from developers. The tribunal said buyers must approach government authorities for such refunds.
The case involved a Mumbai homebuyer who booked a 1,000 sq ft apartment in January 2017 for over ₹2 crore. The developer promised possession by December 2019, with a grace period until December 2020. Delays forced the buyer to withdraw and request a refund of the principal amount along with taxes.
MahaRERA had ordered the developer to refund the principal with interest. The buyer asked MREAT to include statutory taxes in the refund. The developer argued that it only collected taxes on behalf of the government and did not benefit from them.
MREAT agreed. The tribunal explained that GST, MVAT, TDS, stamp duty, and registration fees belong to the government. Developers act as collection agents. TDS goes directly to the Income Tax Department. Stamp duty and registration fees are in the buyer’s name. Buyers must apply to authorities for any refunds.
Legal experts welcomed the clarity. Trupti Daphtary, a Mumbai solicitor, noted that the Bombay High Court is reviewing related issues. The court will decide if developers must pay interest on statutory amounts under Section 18 of RERA.
The tribunal reaffirmed that Section 18(1) of RERA requires developers to refund only the money they actually received for the flat. Statutory levies remain outside this obligation.
This ruling clears confusion over tax refunds in real estate transactions. Buyers now know they must seek GST, TDS, stamp duty, and registration refunds directly from the government, not developers.
