The National Anti- Profiteering Authority (NAA), has found that additional ITC benefited in the post-GST period on ‘Construction Service’ not passed to the purchasers of the flat by the builder and directed to re-investigate.
An application was filed against M/s Prateek Infra Projects India Pvt. Ltd alleging that the respondent had not passed on the benefit of ITC to him by a commensurate reduction in the Unit price purchased from the Respondent in his Project “Prateek Edifice on the introduction of GST w.e.f. 01.07.2017 as required in terms of Section 171 of the CGST Act, 2017.
Shri Rajesh Kumar Jain appeared for the Respondent while the applicants themselves appeared.
In the post-GST period, the Respondent had benefited from additional ITC to the tune of 7.37 of the turnover amounting to the profiteering of Rs. 11,99,09,042/- which included 12% GST on the base amount of Rs. 10,70.61,545/- which was inclusive of the profiteered amount of Rs. 57,900/- and Rs 1,75,220/- (including GST) in respect of the Applicant No. 1 and No.2.
The applicant contended that in the DGAP’s Report, the total saleable area in the Project has been wrongly claimed to be 12,19,140 Sq. Ft., while the actual saleable area as per the declaration made under the RERA by the Respondent is 12,39,814 Sq. Ft.
It was observed that the saleable area of the Respondent considered for calculation of profiteered amount was to be based upon his RERA documents as it was the practice followed by the DGAP and was directed to recalculate the saleable area based upon his RERA documents/registration of the Respondent.
The Coram consist of Sh. Amand Shah, Chairman & Technical Member, Sh. Pramod Kumar Singh, Technical Member and Sh. Hitesh Shah, Technical Member directed the DGAP to reinvestigate the matter as per the provisions of Rule 133(4) of the CGST Rules 2017.
The authority held that “the DGAP must determine the authenticity and correctness of the data/information and records upon which its Report was based and after determining the authenticity of such information/data & records reinvestigate and re-determine the profiteered amount, if any, for the Project and each eligible recipient of supply in the said Project based upon such authentic and correct data, information and records.”
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