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Keeping in view the self-admission of the Respondent in which he has stated that he is liable to pass on the benefit of additional ITC as per the provisions of Section 171 of the above Act, there is reasonable ground to believe that the Respondent is required to pass on the benefit of additional ITC to the eligible house buyers in respect of the above projects. Accordingly, the DGAP is also directed to investigate the issue of passing on the benefit of additional ITC.

Section 171 of the CGST Act, 2017— Anti- Profiteering – The applicants alleged profiteering by the Respondent in respect of purchase of Flats in his “Paradise” project located in Sector-62, Gurgaon. They alleged that the Respondent had not passed on the benefit of ITC availed by him by way of commensurate reduction. The DGAP submitted that the present investigation has covered the period from 01.07.2017 to 31.12.2018. Further, profiteering, if any, for the period post December, 2018, has not been examined by him. The DGAP submitted that the provisions of Section 171 (1) of the Act requiring that “a reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices”, have been contravened by the Respondent in the present case. Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent is required to pass on the benefit of additional ITC to the eligible house buyers in respect of the above projects. Further, directed the DGAP to investigate the issue of passing on the benefit of additional ITC in respect of the other projects undertaken by the Respondent.