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NAA finds Gurugram based Builder Guilty for not passing Input Tax Credit [Read Order]

Tax Invoices - ITC - AAR - vexatious ITC - Investigation - Taxscan

The National Anti- Profiteering Authority ( NAA ) has found the builder Ramaprastha Promoter and Developers Gurugram Guilty for not passing Input Tax Credit.

The complaint was filed before the Haryana State Screening Committee on Anti-Profiteering by the Applicant No. 1 alleging profiteering by the Respondent in respect of the purchase of Flat No. K-1603 in the Respondent’s project “Edge Towers”, Ramprastha City, Gurugram, Haryana.

The Applicant had alleged that the Respondent had not passed on the benefit of Input Tax Credit (ITC) to him by way of commensurate reduction in the price. This Complaint was examined by the Haryana State Screening Committee and upon being prima facie satisfied that the Respondent had contravened the provisions of Section 171 of the CGST Act, 2017, forwarded the said application with its recommendation to the Standing Committee on Anti-profiteering for further action, in terms of Rule 128 of the CGST Rules, 2017.

The NAA bench comprising of Chairman, B. N Sharma and two technical members, J C Chauhan and Amand Shah delivered the order based on an application filed against Ramaprastha Promoter and Developers.

The NAA observed that since the Respondent has denied benefit of ITC to his homebuyers in his Project ‘Edge Towers’ in contravention of the provisions of Section 171 (1) of the CGST Act, 2017 and has thus committed an offence under Section 171 (3A) of the above Act, he is liable to be penalized under the provisions of the above Section.

Section 171 (1) elaborates as Any reduction in the rate of tax on any supply of goods or services or the benefit of the input tax credit shall be passed on to the recipient by way of commensurate reduction in prices.

The NAA also said that the Respondent has profiteered in the project ‘Edge Tower’. Therefore, as per the provisions of Section 171(2) of the CGST Act, 2017, to verify all the Input Tax Credits of the Respondent so as to arrive at the aggregate profiteering of the Respondent, since profiteering on the part of the Respondent has already been established in the case of “Edge Towers” project.

To Read the full text of the Order CLICK HERE
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