DG Anti Profiteering Vs Siddha Infradev LLP (GSTAT)
The proceedings arose from a complaint filed under Rule 128 of the CGST Rules, 2017 alleging profiteering by a real estate developer in relation to a residential flat purchased in the “Siddha Sky” project in Kolkata. The complainants alleged that the developer failed to pass on the benefit of additional Input Tax Credit (ITC) after implementation of GST, despite charging GST at the effective rate of 12%, thereby violating Section 171 of the CGST Act, 2017.
The Standing Committee on Anti-Profiteering referred the matter to the Director General of Anti-Profiteering (DGAP) for investigation. The initial DGAP report dated 19.03.2020 concluded that the respondent had benefited from additional ITC of 2.45% of turnover post-GST and profiteered Rs. 1,88,44,127 including GST.
The matter was later remanded by the erstwhile National Anti-Profiteering Authority (NAA) for further investigation to verify the respondent’s claim that prices for flats sold after GST implementation had been renegotiated after considering ITC benefits. The DGAP subsequently recomputed the profiteered amount at Rs. 93,14,995 for the period up to 31.10.2020 and accepted that units sold post-GST were outside the scope of investigation because the prices had been renegotiated factoring in ITC benefits.
