Director General of Anti-Profiteering Vs Ireo Waterfront Pvt. Ltd (Competition Commission of India)
In a recent ruling, the Competition Commission of India (CCI) has concluded its investigation into Ireo Waterfront Pvt. Ltd., determining that the company did not pass on additional benefits of input tax credit (ITC) to is customers post-GST implementation. This decision, encapsulated in a report dated July 29, 2024, follows a lengthy inquiry initiated under Rule 129 of the Central Goods and Service Tax (CGST) Rules, 2017.
Background of the Case
The inquiry into Ireo Waterfront commenced with a report submitted by the Director-General of Anti-Profiteering (DGAP) on December 15, 2021. Initially, the National Anti-profiteering Authority (NAA) was responsible for examining the allegations of profiteering. However, following a regulatory shift on December 1, 2022, the jurisdiction for such matters was transferred to the CCI under Notification No. 23/2022-Central Tax.
The CCI undertook a detailed review of the DGAP’s findings and subsequently issued an interim order on July 31, 2023. This order directed the DGAP to broaden its investigation to include transactions occurring after December 31, 2020, until the issuance of the complete Occupation Certificates for the project.
Investigation Findings
Upon further examination, the DGAP established that Ireo Waterfront had opted for a GST rate of 5% without availing ITC, following Notification No. 03/2019-Central Tax (Rate). Consequently, the scope of the investigation was limited to the period from July 1, 2017, to March 31, 2019, rather than extending beyond that date.
