The National Anti-Profiteering Authority (NAA) directed the Director-General of Anti-Profiteering (DGAP) to examine alleged profiteering by Siddha Infradev LLP.
The complaint has been filed against respondent, Siddha Infradev LLP alleging profiteering in respect of the purchase of a residential unit in Respondent’s project “Siddha Sky” located in Kolkata.
It has been alleged that the Respondent had not passed on the benefit of input tax credit (ITC) by way of commensurate reduction in prices despite having charged 12% GST on the payments made by him to the Respondent.
The DGAP reported that the ITC as a percentage of the total turnover which was available to the Respondent during the pre-GST period was 0.80% and during the post-GST period this ratio was 3.25%.
The DGAP has further reported that the Respondent has benefited from ITC to the tune of 2.45% of his total turnover during the post-GST period which he was required to pass on to the flat buyers of his project.
The DGAP has also found that the Respondent had not reduced the basic prices of his flats by 2.45% on the account of benefit from ITC although he had been charging his homebuyers, GST at the increased rate of 12% on the pre-GST basic price.
The NAA headed by the Chairman B.N.Sharma noted that the Respondent has claimed to have sold 70 flats after the introduction of GST and also claimed that he had freshly negotiated the prices of these flats after considering the benefit of the input tax credit. On this issue, the DGAP vide his clarificatory Report has himself stated that this claim of the Respondent needed to be further examined as the same was made before this Authority and not before him.
Therefore, the NAA directed the DGAP to ascertain whether the Respondent has been constructing any other projects during the pre-GST and post-GST regimes and if so, the DGAP is also directed under Section 171 (2) of the CGST Act to verify whether the provisions of Section 171 have been followed by the Respondent in the case of other projects being constructed by him and submit a comprehensive Report under Rule 129 (6) of the CGST Rules, 2017.
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