GSTAT Confirms Rs. 2.34 Lakh ITC Profiteering Demand Against Maruti Developers

DGAP, DG Anti-Profiteering, Director General of Anti-Profiteering Vs Maruti Developers (GSTAT)

The GST Appellate Tribunal, Principal Bench, considered the re-investigation of anti-profiteering proceedings against Maruti Developers in respect of the project “Maruti Tower” at Malad (West), Mumbai. The original DGAP investigation examined the period from 01.07.2017 to 31.03.2019. Following the Delhi High Court judgment dated 29.01.2024 in Writ Petition No. 7743/2019 and connected matters, the Competition Commission of India directed re-investigation.

The revised DGAP computation took into account Rs. 5,26,200/- of unutilised GST ITC which had subsequently been reversed through FORM GST DRC-03 dated 24.07.2026. Net GST ITC was consequently reduced from Rs. 62,94,879/- to Rs. 57,68,679/-, and the post-GST ITC-to-purchase-value ratio became 16.17% against 13.97% in the pre-GST period, producing an additional ITC benefit of 2.20%. Applying 2.20% to the post-GST purchase value of Rs. 3,56,83,328/- and apportioning the benefit on a per-square-foot basis, the DGAP determined profiteering of Rs. 2,34,671/-. GST of Rs. 28,161/- brought the aggregate to Rs. 2,62,832/-.

The Respondent accepted the revised computation during the hearing on 03.09.2026 and furnished flat-wise reconciliation. The Tribunal found the revised methodology and figures in accordance with the facts and material on record and accepted the DGAP’s clarification dated 12.08.2026. Referring to Section 171 of the CGST Act, 2017, the Tribunal held that the additional ITC benefit was required to be passed on to eligible recipients by way of commensurate reduction in prices. It applied Rule 133(3)(b) of the CGST Rules, 2017 and directed return of the amount not passed on with interest at 18%.