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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 and he has thus resorted to profiteering.

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, wherein he alleged profiteering by the Respondent in respect of purchase of Flat in ‘Emerald Floors Premier’ project of the Respondent. The above Applicant had alleged that the Respondent had not passed on the benefit of ITC by way of commensurate reduction in the price of the above flat. The DGAP held that the provisions of Section 171 (1) of the Act, 2017 requiring that a reduction in rate of tax on any supply of goods or services or the benefit of ITC shall be passed on to the recipient by way of commensurate reduction in prices, have been contravened by the Respondent.
Held that:- The Hon’ble Anti-Profiteering Authority held that the Respondent shall reduce the prices to be realized from the buyers of the flats commensurate with the benefit of ITC received by him. The authority further held that the Respondent has denied benefit of ITC to the buyers of the flats, contravened the provisions of Section 171 (1) of the Act, 2017 and has thus resorted to profiteering, thus, liable for penalty under Section 171 (3A) of the Act, 2017.—Rahul Kumar, And Director General of Anti-Profiteering, Central Board of Indirect Taxes & Customs Vs. Emaar MGF Land Ltd. [2020] 24 TAXLOK.COM 021 (NAPA)