DG Anti Profiteering Vs Amal Realtors Pvt. Ltd. (GSTAT)
The GST Appellate Tribunal (GSTAT) accepted the DGAP report in proceedings against Amal Realtors Pvt. Ltd. concerning alleged profiteering in the “Madhu Vasant CHS Ltd.” project. The complaint alleged failure to pass on additional Input Tax Credit (ITC) benefit through commensurate price reduction after introduction of GST. The DGAP found that the ratio of credit availed to purchase value declined from 8.26% during the pre-GST period to 7.87% during the post-GST period, resulting in a negative difference of 0.39 percentage points and indicating that no additional ITC benefit had accrued. GSTAT considered objections regarding CA-certified project data, consolidated statutory records and benefits allegedly passed to certain purchasers. It also noted that VAT credit of Rs. 4,51,873/- had been passed to eligible purchasers, while no corresponding VAT credit accrued in respect of the Applicant’s transaction. Finding no additional ITC benefit arising from implementation of GST, GSTAT accepted the DGAP report and disposed of the proceedings.
The proceedings arose from a complaint filed by Shri Avadhoot Janaradan Sansare under Rule 128 of the Central Goods and Services Tax Rules, 2017, alleging profiteering by M/s. Amal Realtors Pvt. Ltd. in respect of Flat No. MV 06041 in the project “Madhu Vasant CHS Ltd.” The allegation was that the Respondent had failed to pass on the benefit of Input Tax Credit (ITC) by way of commensurate reduction in price after introduction of GST with effect from 01.07.2017, in contravention of Section 171 of the Central Goods and Services Tax Act, 2017.
