NAA directs GST Commissioners to ensure Profiteering Amount is passed to all eligible buyers of Flats [Read Order]

Profiteering Amount - NAA - Flats Construction GST - Nani Resorts - Flat Buyers - AAR - GST - Taxscan

The National Anti-Profiteering Authority (NAPA) directed the Central Goods and Service Tax (CGST) or State Goods and Service Tax (SGST) Commissioners to ensure the profiteering amount is passed to all the eligible buyers of the flats. And submit a report of compliance within 4 months from the date of receipt of the order.

In the case of Abhishek Singh & Director General of Anti-Profiteering vs. M/s. Aparna Constructions and Estates Pvt. Ltd., it was observed that the respondent company denied the benefit of Input Tax Credit (ITC) to the buyers of the flat, which is the contravention of Section 171(1) of the Central Goods and Service

Tax (CGST) Act, 2017. Consequently, the respondent is liable for the penalty for the contravention of Section 171(1) CGST Act, 2017.

The respondent, in this case, is M/s. Aparna Constructions and Estates Pvt. Ltd. was a builder and it undertook the project namely ‘Aparna Serene Park’ wherein one of the flats was purchased by the Applicant. The applicant was denied the benefit of Input Tax Credit (ITC) by the company, by the way of commensurate the reduction in the price of the flat purchased by the applicant.

The issue raised in this case was whether the applicant was eligible to avail of the benefit of Input Tax Credit (ITC) or not?

The National Anti-Profiteering Authority (NAPA) comprising of the Chairman, B.N. Sharma and the Technical Members, J.C. Chauhan and Amand Shah observed that the respondent company denied the benefit of Input Tax Credit (ITC) to the buyers of the flat, which is the contravention of Section 171(1) of the Central Goods and Service Tax (CGST) Act, 2017. Consequently, the respondent is liable for the penalty for the contravention of Section 171(1) CGST Act, 2017.

The Authority further directed the Central Goods and Service Tax (CGST) or State Goods and Service Tax (SGST) Commissioners to ensure the profiteering amount is passed to all the eligible buyers of the flats. The commissioner was asked to submit a report of compliance within 4 months from the date of receipt of the order.

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