If you cancel a flat booking on your own, the developer can usually keep part of what you paid, typically up to the booking amount. But if the developer delays possession or changes the plan, RERA gives you the right to a full refund with interest.
Before you sign the agreement
Under RERA, a developer cannot collect more than 10% of the price before signing a registered agreement for sale. If you change your mind at the booking stage, read the booking form, since it sets out how much is refundable.
Cancelling after signing the agreement
Once the agreement is signed, the cancellation clause decides the deduction. Agreements based on the RERA model usually let the developer keep the booking amount, up to 10% of the price, and refund the rest within a set period. Taxes paid and brokerage are often not refunded.
When the developer is at fault
- If the developer fails to hand over by the RERA completion date, you can exit and get a full refund with interest, or stay and receive interest for every month of delay.
- If the developer changes the approved plan without your consent, you can also claim a refund with interest.
- You can file a complaint with Karnataka RERA online if the developer does not pay.
What happens to the GST you paid
If a booking is cancelled, the developer can issue a credit note and refund the GST, within the time limits allowed under GST law. If that window has passed, the buyer may need to claim the refund from the GST department.
Before booking, check a project’s RERA completion date and track record. Our guide on GST on property explains the tax side of your payments.
Frequently asked questions
Can a builder keep my booking amount if I cancel?
Usually yes, up to the booking amount set in your agreement, typically capped at 10% of the price.
Do I get a full refund if the project is delayed?
Yes. Under RERA, if the developer misses the completion date, you can exit with a full refund plus interest.
Is GST refunded when I cancel a flat?
The developer can refund it through a credit note within the GST time limits; otherwise you may need to claim it.
Where do I complain if a Bengaluru developer refuses a refund?
File a complaint on the Karnataka RERA website, rera.karnataka.gov.in.
