Builder Accepts DGAP Findings on Anti-Profiteering Unconditionally: GSTAT Orders to Pass GST ITC Benefit to Homebuyers [Read Order]

The Goods and Services Tax Appellate Tribunal ( GSTAT ) ordered the passing of the GST ITC benefit to homebuyers. This decision was made by the tribunal after noting that the builder accepted the findings of the Director General of Anti-Profiteering (DGAP).

The appeal was filed by the DGAP against Diya Greencity Pvt. Ltd - respondent in respect of its real estate project “Diya Greencity” for alleged non-passing of GST input tax credit (ITC) benefits to homebuyers.

The DGAP found that the total ITC benefit accrued to the builder was ₹11.33 crore, out of which benefits amounting to ₹13.19 crore had already been passed on to 1,177 eligible buyers by Diya greencity.

However, the anti-profiteering officer said that ITC of ₹20.21 lakh have not been passed on to 21 homebuyers.

During proceedings before the GSTAT, the builder, through its counsel, filed written submissions unconditionally accepting the findings, observations and conclusions of the DGAP report. The builder submitted that they are willing to pass the remaining benefit.

The bench noted that as the builder accepted the DGAP report and agreed to pass on the balance ITC benefit. Therefore there is no dispute for adjudication.

The tribunal, after accepting the findings, directed the respondent to pass on the remaining GST ITC benefit of ₹20.21 lakh to 21 homebuyers, along with applicable interest. The proceedings were concluded accordingly.