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The Respondent has denied benefit of ITC to the buyers of the flats being constructed by him in contravention of the provisions of Section 171(1) of the CGST Act, 2017 and he has thus resorted to profiteering.

Section 171 of the CGST Act, 2017— Anti-Profiteering — The Applicant alleged that the Respondent had resorted to profiteering, while he had sold flat in his project 16th Park View situated in Sector-19A Yamuna Express Way, Jaypee Green Sports City (East), Land Parcel, Mirzapur, Greater Noida to him. The Applicant had also alleged that the Respondent had charged GST @ 12% from him on the consideration paid by him before the GST had come into force w.e.f. 01.07.2017. He alleged that he had paid the full amount for the purchased fiat on or before 30.06.2017 and got the demand letter on 02.07.2017 in which no GST was charged on the consideration paid before 01.07.2017, but later on in July 2017, the Respondent had raised demand for payment of GST @ 12% from him on the amount paid prior to the imposition of the GST. The DGAP submitted that the respondent contravened the provisions of Section 171 of the Act, inasmuch as the additional benefit of ITC received by the Respondent during the period from 01.07.2017 to 31.03.2019, has not been passed on to the Applicant and the other recipients. Held that:- The Hon’ble Anti-Profiteering Authority held that the provisions of Section 171 of the Act, have been contravened by the Respondent as he has not passed on the benefit of ITC to his customers and further directed that the respondent shall reduce the prices to be realized from the buyers of the flats of the above Project. The respondent contravened the provisions of Section 171(1) of the Act and has thus resorted to profiteering and liable for imposition of penalty. The Authority directed the DGAP that Respondent has himself admitted that he was executing 33 projects, had passed on benefit of ITC in respect of 14 projects and had not charged GST in respect of 12 projects, as such, the above projects are required to be investigated as there are sufficient reasons. — Shivam Agarwal, Director General of Anti-Profiteering, Central Board of Indirect Taxes And Customs Gaursons Realtech Pvt. Ltd. [2020] 26 TAXLOK.COM 014 (NAPA)

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