The National Anti-Profiteering Authority (NAA), has found M/s GLS Infraprojects Pvt. Ltd. not guilty of anti-profiteering since the construction project was launched in the post-GST era and no pre-GST sale for comparison of base price.
An application was filed against the respondent M/s GLS Infraprojects Pvt. Ltd. alleging profiteering in respect of purchase of flats in ‘Avenue-51’ project. The applicant submitted that they had been denied the benefit of ITC by the respondent and respondent resorted to profiteering in violation of the provisions of section 171 (1) CGST Act, 2017.
The respondent contended that the anti-profiteering provisions could not be applied to the project ‘Avenue-51’ as this project was not in existence before the implementation of the GST and was launched in the GST regime. The respondent further submitted that the Environment Clearance etc require for the construction of the project is received of the date of implementation of GST. The DGPA concluded that the project ‘Avenue-51’ was launched in the post-GST era and there was no price history of the units sold in the pre-GST era which could be compared with the post-GST base price to determine whether there was any profiteering.
The Coram of Mr. Amand Shah, Chairman, Mr. Pramod Kumar Singh, Technical Member and Mr. Hitesh Shah Technical Member has observed that the it could be concluded on the basis of Environment Clearance, that the project started after coming in force of GST, hence there had been no additional benefit of ITC to the respondent and hence he is not require to pass on the benefit to the applicant by reducing the prices of the flats. The applicants could have availed the benefit only if the project was under execution before GST era, then the respondent would have been eligible to avail ITC on the purchase of goods and services after implementation of GST, on which he was not entitle to do so before GST.
The Authority has held that the respondent had not contravened the provisions of section of 171 (1) of the CGST Act, 2017 and find no merit in the application filed by the applicant and the same was dismissed.
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