The National Anti Profiteering Authority (NAA) has held M/s. Lodha Developers Ltd. not guilty of denying Input Tax Credit (ITC) to the flat buyers.
The application filed by Sri Darshan Joshi one of the flat buyer in “Lodha Primo” Project of M/s. Lodha Developers Ltd. alleging that the latter has not passed on the benefit of Input Tax Credit to him, by way of commensurate reduction in flat Price, the National Anti-Profiteering Authority directs the Director-General of Anti-Profiteering to conduct re-investigation.
Authority by relying the report of the Director-General of Anti-Profiteering (DGAP) has observed that the letter of Intent Development, Commencement of Certificate of the project, launching of the project and receipt of payment had taken place in the post-GST regime and hence, there was no pre-GST tax rate and ITC structure which could be compare with the post-GST tax rate and ITC. On the basis, it would emerge that the respondent had neither benefited from additional ITC nor had there been a reduction in the tax rate in the post-GST period and therefore it does not qualify to be a case of profiteering.
Accordingly, NAA held that the case does not fall under the ambit of the Anti-profiteering provisions of section 171 of CGST Act 2017. The allegation of not passed the benefit of ITC is not found sustainable. Hence the application dismissed being not maintainable.
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