GST: NAA finds Aster Infrahome guilty of not passing additional ITC benefits to Homebuyers [Read Order]

The National Anti-Profiteering Authority (NAA) found the respondent M/s Aster Infrahome guilty of not passing additional ITC benefits to the homebuyers.

The applicant has filed the complaints that alleged that the Respondent,  M/s Aster Infrahome had not passed on the benefit of additional Input tax Credit (ITC) to the Applicants as well as other home buyers who had purchased Flats in his Project “Green Court” as per the provisions of Section 171 (1) of the CGST Act, 2017.

The DGAP reported that the Respondent had denied the benefit of ITC to the buyers amounting to Rs. 5.30 Crores pertaining to the period with effect from July 1, 2017, to August 31, 2018, and had indulged in profiteering and violation of the provisions of Section 171 (1) of the Act.

The Authority headed by the Chairman Dr. B.N. Sharma noted that the Respondent has not passed on the benefit of additional Input Tax Credit (ITC) to the above Applicants as well as other homebuyers who have purchased them in his Project “Green Court” and hence, the Respondent has violated the provisions of Section 171 (1) of the CGST Act, 2017.

However, the NAA did not impose any penalty and stated that no penalty provisions were in existence in the period when the Respondent had violated the provisions of Section 171(1), the penalty prescribed under Section 171 (3A) cannot be imposed on the Respondent retrospectively.