DG Anti Profiteering Vs Anuhar Homes Pvt. Ltd. & Ors (GSTAT)
The proceedings arose from a complaint filed by a homebuyer alleging that M/s Anuhar Homes Pvt. Ltd., the developer of the residential project “Morning Raaga” at Alkapur Township, Manikonda, Hyderabad, had charged GST on the purchase of a flat but failed to pass on the benefit of additional Input Tax Credit (ITC) by way of commensurate reduction in price. The Directorate General of Anti-Profiteering (DGAP) initially investigated the matter and submitted its report on 16.09.2021. While the matter was pending before the erstwhile National Anti-Profiteering Authority/CCI, the Delhi High Court’s judgment in Reckitt Benckiser India Pvt. Ltd. v. Union of India resulted in the matter being remanded for fresh investigation.
The DGAP conducted a fresh investigation for the period from 01.07.2017 to 08.08.2018, covering the period from the introduction of GST until issuance of the Occupancy Certificate. It examined GST returns, VAT returns, service tax returns, purchase registers, electronic credit ledger, Joint Development Agreement, balance sheets and project records. The DGAP found that no eligible CENVAT credit of Central Excise Duty or VAT was available during the pre-GST period, whereas GST ITC amounting to Rs. 1,73,84,508 became available during the post-GST period, representing 10.63% of the purchase value. Based on this, it concluded that the Respondent had obtained an additional ITC benefit of 10.63%, which was required to be passed on to homebuyers under Section 171 of the CGST Act, 2017.
