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Respondent has denied benefit of ITC to the buyers of the flats being constructed by him in his Project "Laurel Heights" in contravention of the provisions of Section 171 (1)(i) of the CGST Act, 2017

Shanti Prime Publication Pvt. Ltd.

Section 171 of the CGST Act, 2017— Anti- Profiteering – This report has been received from the applicant no. 2 i.e. DGAP. The applicant No. 1 filed application before the Standing Committee on Anti-profiteering, wherein he alleged profiteering by the Respondent in respect of purchase of Flat in ‘Laurel Heights’ project of the Respondent. The DGAP after investigation held total profiteered amount of Rs.80,55,955/- which included GST @12% on the base profiteered amount of Rs.71 92,817/-. The report also submits that based on the joint developer’s turnover as given in the GST returns, the profiteered amount is arrived at Rs.18,64,290/- which includes GST @18% and therefore the total profiteered amount in the present case is Rs.99,20,246/- which includes GST @12% or 18% on the base profiteered amount of Rs.87,72,724/-. Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent shall reduce the prices to be realized from the buyers of the flats commensurate with the benefit of ITC. The Authority determined the profiteered amount as Rs.99,20,246/- and directed the Respondent to pass on the benefit of Rs.18,563/- to the Applicant, Rs.80,37,392/- to the 231 buyers and Rs.18,64,290/- to the land owner, along with interest @18% per annum to these 232 flat buyers. The Respondent denied benefit of ITC to the buyers in contravention of the provisions of Section 171 (1)(i) of the Act, 2017 and has thus committed an offence under section 122(1)(i) of the Act, 2017 and therefore, liable for imposition of penalty. — Deepak Kumar Khurana, Director General of Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs. Sattva Developers Pvt. Ltd. [2019] 13 TAXLOK.COM 015 (NAPA)