HFL Care Homes Liable for Profiteering Due to Failure to Pass ITC Benefit to Homebuyers: GSTAT

DG Anti Profiteering Vs LIC HFL Care Homes Ltd (GSTAT) The case arises under Section 171 of the Central Goods and Services Tax (CGST) Act, 2017 and concerns whether a real estate developer profiteered by not passing on the benefit of Input Tax Credit (ITC) to homebuyers through commensurate reduction in prices. The issues included determination of profiteering amount, liability to pay GST on such amount, and applicability of interest. A homebuyer alleged that the developer failed to pass on ITC benefits after the introduction of GST and instead charged GST at 12% on demands raised post-GST. Th...