Latest GST Judgments

For Full Access To All Latest Judgments on GST
Click Here To Subscribe Now
Take a tour of our GST Library

The Respondent has denied benefit of ITC to the buyers of the flats being constructed by him in his above project in contravention of the provisions of Section 171 (1) of the CGST Act, 2017

Anti-Profiteering — Section 171 of the CGST Act, 2017— The application filed alleging profiteering in respect of purchase of a flat in the Respondent's “Avadi” Project at Chennai, from the Respondent. The Applicant alleged that the Respondent had not passed on the benefit of ITC by way of commensurate reduction in the price of the flat, on implementation of GST w.e.f. 01.07.2017. The DGAP submitted that the Respondent has collected the benefit of additional ITC to the tune of 7.06% from the Applicant and the other home buyers. Therefore, the provisions of Section 171 of the Act have been contravened by the Respondent inasmuch as the additional benefit of ITC @ 7.06% of the amount collected has not been passed on to the Applicant and other recipients.
Held that:- The Hon’ble Anti-Profiteering Authority directed the Respondent to to reduce the prices commensurate with the benefit of ITC received by him as per the provisions of Rule 133 (3) (a). Further held that the Respondent has denied the benefit of ITC to the buyers of the flats being constructed by him in his Project, in contravention of the provisions of Section 171 of the Act, therefore, liable for imposition of penalty.—S. Ganapathy Subramanian, Director General Of Ant-Profiteering Central Board of Indirect Taxes & Customs Vs. Mahindra Lifespace Developers Ltd. [2020] 26 TAXLOK.COM 030 (NAPA)