DGAP Vs Raja Housing Limited (GSTAT)
The matter was heard in hybrid mode before the Goods and Services Tax Appellate Tribunal. The Director General of Anti-Profiteering was represented by its authorized officer, while the original complainant appeared virtually. The case originated from an email received from the Standing Committee of the State of Karnataka on Anti-Profiteering. The complainant had purchased an apartment from the respondent and alleged that the receipt issued did not reflect the GST component paid to the developer.
The matter was examined by the Karnataka State Screening Committee, which considered reports from the investigation wing of the Bangalore South Commissionerate and the State enforcement team. It was noted that the project, Raja Ritz Avenue Phase-I, commenced prior to 01.04.2019, and the respondent opted to continue under the old tax regime of 12% GST with input tax credit, as permitted under Notification No.03/2019 GST (Rate) dated 29.03.2019. Although the respondent was liable to pay GST at 12%, it collected GST from buyers at 5%, bearing the differential 7% itself to remain competitive.
The Screening Committee recorded that invoices in the standard GST format were not issued because GST was collected at 5% while liabilities were discharged at 12%, which would have affected reconciliation of sales records and internal accounts. The investigation team verified sample sale deeds, payment vouchers, and customer-wise ledgers and confirmed that sale consideration inclusive of 5% GST was correctly declared, vouchers were issued for payments received, and records were properly maintained.
