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Builder has not passed additional ITC benefit to flat buyers.

Anti-Profiteering — The provisions of Section 171 of the CGST Act, 2017 have been contravened by the Respondent as he has profiteered an amount of Rs.2,10,57,462/- which includes 12% GST on the base profiteered amount of Rs.1,88,01,305/-. The Respondent has also realized an additional amount to the tune of Rs.1,91,662/- from the Applicant No. 1 which includes both the profiteered amount @ 2.61% of the taxable amount (base price) and the GST on the said profiteered amount. Accordingly, the above amounts shall be paid to the above Applicant and the other eligible house buyers by the Respondent along with interest @18% from the date from which these amounts were realised from them till they are paid as per the provisions of Rule 133 (3) (b) of the CGST Rules, 2017, within a period of 3 months from the date of passing of this order.

Held that - Respondent has denied benefit of ITC to the buyers of the flats and the shops being constructed by him in his Project ‘Fusion Homes’ in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and has committed an offence under Section 171 (3A) of the above Act and therefore, he is liable for imposition of penalty under the provisions of the above Section. Accordingly, a Show Cause Notice be issued to him directing him to explain as to why the penalty prescribed under Section 171 (3A) of the above Act read with Rule 133 (3) (d) of the CGST Rules, 2017 should not be imposed on him. — Susheel Prasad Todi, Director General of Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs. ACME Housing India Pvt Ltd., Building [2020] 20 TAXLOK.COM 001 (NAPA)

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