DG Anti Profiteering Vs Assotech Ltd. (GSTAT)
The Goods and Services Tax Appellate Tribunal (GSTAT) considered proceedings arising from a complaint filed under Rule 128 of the Central Goods and Services Tax Rules, 2017, alleging profiteering in respect of construction services provided in the “Assotech Windsor Court Society” project. The complainant alleged that the Respondent had failed to pass on the benefit of Input Tax Credit (ITC) after the introduction of GST from 01.07.2017, as required under Section 171 of the CGST Act, 2017.
The Standing Committee on Anti-Profiteering referred the matter to the Directorate General of Anti-Profiteering (DGAP) for investigation. The DGAP investigated the period from 01.07.2017 to 31.03.2024. The Respondent’s project consisted of 744 units, of which 524 units were constructed in the pre-GST period, 192 units in the post-GST period, 12 units remained unsold, and 16 units were demolished by the concerned authority.
The DGAP compared the ratio of ITC to purchase value in the pre-GST and post-GST periods. In the pre-GST period, the Respondent had availed service tax credit of Rs.3,30,63,145 and VAT credit of Rs.4,43,92,537, aggregating to Rs.7,74,55,682, resulting in an ITC ratio of 9.70% to purchase value. In the post-GST period, the Respondent availed net GST ITC of Rs.5,30,17,380, resulting in an ITC ratio of 11.89%. The DGAP found an additional ITC benefit of 2.18% after implementation of GST.
