Director General of Anti-Profiteering Vs MICL Realty LLP (Competition Commission of India)
Introduction: The Competition Commission of India (CCI) recently issued a ruling against MICL Realty LLP for alleged Goods and Services Tax (GST) profiteering. The case, initiated by a complaint filed under Rule 128 of the CGST Rules, 2017, accused MICL Realty LLP of not passing on the Input Tax Credit (ITC) benefits to a homebuyer. In this article, we provide a comprehensive overview of the case, examining the details of the investigation, responses from both parties, and the CCI’s findings.
Detailed Analysis: The investigation, triggered by a complaint from a homebuyer, focused on MICL Realty LLP’s project “Aaradhya Nine-Ghatkopar Avenue” in Mumbai. The complainant alleged that despite assurances of ITC benefits, MICL Realty LLP did not reduce the property price accordingly. The Director General of Anti-Profiteering (DGAP) conducted a thorough examination, considering the period from 01.07.2017 to 03.12.2019.
MICL Realty LLP, in response to the DGAP’s notices, submitted details and explanations. The company argued that it had passed on the benefit of ITC amounting to Rs. 94,83,735/- to 48 homebuyers, as confirmed by bank statements and customer acknowledgments. However, the DGAP’s analysis identified discrepancies and revealed that while some homebuyers received excess benefits, others did not receive the full benefit.
The DGAP’s key findings included:
