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Gaursons Realtech liable for Profiteering of 19.72 Cr: NAA directs DGAP to ensure Profiteered Amount is passed to all Buyers

NAA - Gaursons Realtech - DGAP - Profiteering - Buyers - Taxscan

The National Anti-Profiteering Authority (NAA) held that the Gaursons Realtech is liable for profiteering of 19.72 Crores and directed the DGAP to ensure that the profiteered amount is passed on to all buyers.

The Applicant had alleged in his application that the Respondent had resorted to profiteering while he had sold a flat in his project ‘16 Park View’, situated at Greater Noida to him. The above Applicant had also alleged that the Respondent had charged 12% GST from him on the consideration paid by him before the GST had come into force.

He had further alleged that he had paid the full amount for the purchased flat before the implementation of the GST and got the demand letter in which no GST was charged on the consideration paid before the implementation of the GST, but later on, in July 2017, the Respondent had raised the demand for payment of implementation of the 12% GST from him on the amount paid prior to the imposition of the GST.

The DGAP has observed the contention of the Respondent that he would compute the benefit on account of ITC of GST in respect of the project at the end of the project after making necessary adjustments on account of various contingencies and situation which lead to the reduction/reversal loss of credit in GST in future, might have merit but the profiteering any had to be determined at a given point of time.

Therefore,  DGAP reported that the additional ITC available to the Respondent and the amounts received by him from the Applicant and other recipients post-implementation of GST had to be taken into account to determine the benefit of ITC that was required to be passed on.

The Authority consisting of the Members J.C. Chauhan and Amand Shah held that the Gaursons Realtech is liable for profiteering of 19.72 Crores and directed the DGAP to ensure that the profiteered amount is passed on to all buyers.

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