DG Anti Profiteering Vs Laureate Buildwell Pvt. Ltd. (GSTAT)
The proceedings concerned alleged profiteering by M/s. Laureate Buildwell Pvt. Ltd. in respect of construction services supplied for its project “Parx Laureate”. The DGAP initially reported that the ratio of input tax credit (ITC) to purchase value increased from 6.48% in the pre-GST period to 16.91% in the post-GST period and determined a profiteered amount of Rs. 25,52,40,017/-. The Respondent claimed to have passed on ITC benefit of Rs. 40,69,57,530/-, while the DGAP reported a net amount to be passed on of Rs. 5,95,56,344/-.
The Respondent submitted that the full and commensurate ITC benefit had already been passed on to eligible homebuyers and challenged the DGAP’s methodology, including the treatment of excess benefit and discounts. The DGAP maintained that its methodology was consistent with Section 171 of the CGST Act, 2017 and that the Respondent had not passed on the full statutory benefit.
After hearings on 20.01.2026, 10.02.2026, 17.03.2026, 09.04.2026 and 07.05.2026, the Tribunal remanded the matter to the DGAP under Rule 133(4) of the CGST Rules, 2017 for reinvestigation considering the material submitted by the Respondent. The supplementary report dated 21.07.2026 recalculated the post-GST ITC ratio at 15.97%, compared with 6.48% for the pre-GST period. After considering cost escalation, the DGAP determined profiteering of Rs. 6,89,32,593/- plus GST of Rs. 82,71,911/-, aggregating Rs. 7,72,04,504/-.
