The National Anti-Profiteering Authority (NAA), has finds M/s Jay Ambe Developers guilty of Anti-profiteering by not passing the additional benefit of Input Tax Credit.
An application was filed against the respondent, M/s Jay Ambe Developers, alleging that the respondent had not passed on the benefit of Input Tax Credit to the buyer of the flat by commensurate reduction in the prices.
The respondent contented that section 171 could not be invoked in respect of the applicant and four other buyers, they had booked the units during the post-GST period and the entire consideration towars sales was paid during post-GST period. only three buyer shad booked units during pre-GST period and from whom amount was received in advance under pre-GST period and post-GST period both.
The DGAP concluded that the respondent contravened section 171 of the CGST Act,2017, the additional ITC which was required to be passed on by the respondent to his recipients has not been passed to the recipients. The respondent had realized an additional amount of 4,31,473/- during post-GST period.
The Authority observed that the project was started in pre-GST period and several bookings/payments were made in the pre-GST period. based on the report of DGAP the percentage of turnover, that was available to the respondent during the pre-GST period was 0.00%, whereas, during the post-GST it was 1.85%. this confirms that in the post-GST period, the respondent has benefited from additional ITC to the tune of 1.85% of his turnover and the same was required to be passed to eligible flat buyers.
The Coram of Mr. Amand Shah, Chairman, Mr. Pramod Kumar Singh, Technical Member and Mr. Hitesh Shah, Technical Member has held that M/s Jay Ambe Developers is guilty of anti-profiteering and the amount profiteered is to be passed on to the home buyers along with interest at 18% from the date when the amount was profiteered by him till the date of such payment.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
