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Anti-profiteering provisions contained in Section 171(1) of the CGST Act, 2017 are not attracted to the project which has been completed before coming into force of the GST.

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Anti-Profiteering — Section 171 of the CGST Act, 2017— 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, alleging that the Respondent had charged extra VAT, EDC (External Development Charges) and IDC (Internal Development Charges). The said application was examined by the Standing Committee on Anti-Profiteering and was referred to the DGAP. The DGAP stated that there was no allegation by the Applicant No. 1 that the benefit of reduction in the tax rate or additional input tax credit had not been passed by the Respondent. The only allegation was that the Respondent had charged extra VAT, EDC and IDC during the pre- GST period. The DGAP concluded that as the project was completed in the pre-GST period, no benefit of reduction in the tax rate or additional input tax credit was required to be passed on and hence, the case did not attract the provisions of Section 171 (1) of the Central Goods and Service Tax, 2017.
Held that:- The Hon’ble Anti-Profiteering Authority observed that the complaint of the Applicant No. 1 was related to the pre-GST period and that the specific charges on the basis of which the said complaint arose pertained to VAT, EDC and IDC. Since the project has been completed before coming into force of the GST, anti-profiteering provisions contained in Section 171 (1) of the CGST Act, 2017 are not attracted. Accordingly, held that there is no merit in the application.—Park View Ananda Resident Welfare Association, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs. Bestech India Ltd. [2019] 13 TAXLOK.COM 006 (NAPA)