DG Anti Profiteering Vs Mantri Castles Private Limited (GSTAT)
The proceedings arose from a reference received from the Standing Committee on 30.05.2022 to investigate an application alleging profiteering in respect of construction services supplied for the project “Mantri Serenity” at Bangalore. The allegation concerned non-passing of benefit under Section 171 of the CGST Act.
The DGAP submitted its initial report on 27.09.2022 to the erstwhile National Anti-Profiteering Authority, which was pending before the Competition Commission of India. Meanwhile, pursuant to a judgment dated 29.01.2024 of the Hon’ble High Court of Delhi in connected real estate matters, the case was remanded back to the DGAP on 21.03.2024 for re-investigation under Rule 129 of the CGST Rules, 2017.
The DGAP conducted a fresh investigation covering the period from 01.07.2017 to 31.03.2024 and submitted its report dated 10.10.2024 before the Principal Bench, GSTAT. In its findings, the DGAP compared the percentage ratio of Input Tax Credit (ITC) availed to purchase value in the pre-GST and post-GST periods. The ratio in the pre-GST period was 13.57%, while in the post-GST period it was 11.04%, resulting in a difference of -2.53%. Since the ratio of ITC to purchase value had not increased after implementation of GST, the DGAP concluded that no additional benefit of ITC had accrued to the respondent and there was no apparent savings attributable to GST implementation.
