Section 171 of the CGST Act, 2017— Anti- Profiteering – The DGAP submitted its report after a detailed investigation under Rule 129. The DGAP reported that that Section 171  has been contravened by the Respondent by not passing on the benefit of additional ITC to the tune of 1.18% of the turnover for the project “The Camellias”, which has accrued to the Respondent in the post-GST period from 01.07.2017 to 30.11.2020. The Respondent had realized an additional amount to the tune of Rs. 7,23,50,135/- (including GST). The Respondent has contravened the provisions of Section 171 by not passing on the benefit of additional ITC to the tune of 11.76% of the turnover for the project “The Crest”. The Respondent had realized an additional amount to the tune of Rs. 12,94,35,170/- (including GST). The Respondent has contravened the provisions of Section 171 by not passing on the benefit of additional ITC to the tune of 15.01% of the turnover for the project “The Ultima” and the Respondent had realized an additional amount to the tune of Rs. 4,91,23,070/- (including GST). The Authority observed the hat the Respondent has profiteered by an amount of Rs. 7,23,50;135/-, Rs. 12,94,35,170/- & Rs. 4,91,23,070/- for the projects ‘The Camellias’, ‘The Crest and The Ultima’ respectively during the period of investigation i.e. 01.07.2017 to 30.11.2020.

Held that:- The Hon’ble Anti-Profiteering Authority ordered that the Respondent shall reduce the prices to be realized from the buyers of the flats/shops commensurate with the benefit of ITC received by him. The Respondent is also liable to pay interest as applicable on the entire amount profiteered. The provisions of Section 171 (3A) have been inserted in the Act, 2017 and the same became operational w.e.f. 01.01.2020. As the period of investigation was 01.07.2017 to 30.11.2020, therefore, he is liable for imposition of penalty under the provisions of the above Section. Accordingly, notice be issued to him.