DG Anti Profiteering Vs SJR Prime Corporation Pvt. Ltd (GSTAT)
The proceedings arose from an application filed under Rule 128 of the Central Goods and Services Tax Rules, 2017 by Shri Sarana Basappa before the Karnataka State Screening Committee on Anti-Profiteering. The allegation concerned profiteering by M/s SJR Prime Corporation Pvt. Ltd. in relation to construction services for Flat No. 508 in the sub-project “Goldcoast” of “Blue Water – Phase II.” It was alleged that the Respondent failed to pass on the benefit of additional Input Tax Credit (ITC) accrued after the implementation of GST by way of commensurate reduction in price, as required under Section 171 of the CGST Act, 2017.
The Directorate General of Anti-Profiteering (DGAP) submitted its Investigation Report dated 16.12.2021 under Rule 129 of the CGST Rules. Following directions issued by the Hon’ble High Court of Delhi in W.P. No. 7743/2019 and connected matters, and in terms of a letter dated 20.03.2024 issued by the Commission, the matter was re-investigated.
The investigation period was confined to 01.07.2017 to 31.03.2019, considering the Respondent’s exercise of option under Notification No. 03/2019-Central Tax (Rate) for payment of GST at 1% without ITC.
On examination of records, the DGAP computed that the ratio of ITC to purchase value during the pre-GST period was 10.88%, whereas during the post-GST period it was 17.85%, indicating an incremental benefit of 6.97%. Based on this difference, the DGAP determined the alleged profiteered amount at Rs. 27,85,104/-.
