The National Anti Profiteering (NAA) found Lodha Developers and Lodha Impression Real Estate guilty of denying Input Tax Credit (ITC) to the flat buyers.
The Applicant alleged that the Respondents, Lodha Developers and Lodha Impression Real Estate had not passed on the benefit of input tax credit (ITC) in respect of the flats in “Lodha Eternis” Project of the Respondent on introduction of the GST w.e.f. July 1, 2017, 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 Applicant and other buyers amounting to Rs. 1,90,04,456 pertaining to the period from July 1, 2017 to August 31, 2018 and had thus indulged in profiteering and violation of the provisions of Section 171 (1) of the CGST Act.
The Authority headed by Dr. B.N. Sharma noted that the Respondent has not passed on the benefit of Input tax Credit (ITC) to the Applicant as well as other flat buyers who had purchased flats from the Respondent 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 as no penalty provisions were in existence 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.
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