GSTAT Closed GST Anti-Profiteering Case After Full ITC Benefit Passed to 355 Homebuyers

DG Anti Profiteering Vs Realgem Buildtech Pvt. Ltd. & Ors. (GSTAT)

The present matter arose from an application filed by Shri Mohit J. Vaswani, Mumbai, before the Standing Committee alleging profiteering in respect of Flat No. 2504, Tower-A, DB Crown, in the project “Rustomjee Crown Phase-I” developed by M/s Realgem Buildtech Pvt. Ltd. It was alleged that the Respondent had not passed on the benefit of Input Tax Credit (ITC) by way of commensurate reduction in price upon purchase of the flat.

The Maharashtra State Screening Committee on anti-profiteering examined the application and forwarded it to the Standing Committee, which in turn referred the matter to the Director General of Anti-Profiteering (DGAP) for detailed investigation. The DGAP submitted a report dated 20.07.2021, which was pending before the Competition Commission of India, the erstwhile Authority. Subsequently, by order dated 29.01.2024, the matter was remanded to the DGAP for re-investigation in light of observations made by the Hon’ble High Court of Delhi in the case of M/s Reckitt Benckiser.

Pursuant to notices issued, the Respondent submitted replies along with annexures, which were considered during the investigation. The DGAP examined the ratio of Input Tax Credit to purchase value in the pre-GST and post-GST periods. In the pre-GST period, total CENVAT credit was Rs. 9,87,30,568 with a purchase value of Rs. 74,73,41,076, resulting in a ratio of 13.21%. In the post-GST period, ITC of Rs. 78,45,14,913 was availed against a purchase value of Rs. 5,25,48,32,101, giving a ratio of 14.93%.