The National Anti-Profiteering Authority (NAA) has directed DGAP to investigate profiteering allegations on the supply of construction services under Pradhan Mantri Aawas Yojna (PMAY).
The Applicant No. 1 had filed application before the Standing Committee on Anti-profiteering stating that the Respondent had resorted to profiteering in respect of the supply of construction service related to the purchase of a house under the Pradhan Mantri Aawas Yojna (PMAY) in the Respondent’s project “Mayur Residency Extension”.
He had also alleged that the Respondent had charged GST @ 18% on the construction service/ works contract service and had not passed on the benefit of input Tax Credit (ITC) to him by way of commensurate reduction in the price of the house after implementation of the GST in terms of Section 171 of the CGST Act, 2017.
The said application was examined by the Standing Committee on Anti-profiteering in its meeting held on 11.032019 and upon being prima facie satisfied that the Respondent had contravened the provision of Section 171 (1) of the CGST Act, 2017, it had forwarded the same with its recommendation to the DGAP for a detailed investigation.
The Coram comprising of a Chairman, BN Sharma and two Technical Members JC. Chauhan and Amand Shah pronounced the order based on an application filed against M/S Manas Vihar Sahakari Awas Samiti Ltd.
The Authority observed that the Respondent has denied the benefit of ITC to the buyers of the flats being constructed by him in his Project ‘Mayur Residency Extension’ in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and he has thus apparently committed an offense.
The Authority also observed that the respondent on his submissions has also admitted that he was executing four other projects viz. (i) Manas City Extension Phase-I, (ii) Manas Enclave Phase-Il, (iii) Mayur Complex and (iv) Mayur Residential Complex as is evident from the perusal of Annexures C and Cl-C5. He has also admitted that he has passed on the benefit of ITC on some of these projects by way of reduction in the rate of construction or by way of refund through banking channels.
The NAA further directs the DGAP to investigate the projects of the respondent, in terms of the provisions of Section 171 of the CGST Act, 2017 and to submit his report as per the provisions of Rule 133 (5) (b) of the CGST Rules, 2017.
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