DGAP Vs AXIS Infratech LLP (GSTAT)
The proceedings arose from an investigation report dated 28.11.2024 submitted by the Director General of Anti-Profiteering (DGAP) under Section 171 of the Central Goods and Services Tax Act, 2017 read with Rule 129 of the CGST Rules, 2017. The investigation was initiated pursuant to a reference by the Standing Committee on Anti-Profiteering based on an application alleging that the Respondent, a real estate developer of the project “24K” at Vadodara, Gujarat, had failed to pass on the benefit of Input Tax Credit (ITC) to buyers through commensurate reduction in prices.
The DGAP identified 11 homebuyers whose units were booked prior to the issuance of the Completion Certificate dated 16.05.2019. These buyers were held eligible to receive ITC benefits under Section 171 of the CGST Act. Nine units sold after the Completion Certificate were excluded from the investigation. The buyers’ flat areas ranged between 2249.676 sq. ft. and 3207.672 sq. ft., and bookings were made between 05.10.2016 and 12.10.2018.
Applying the area-based methodology mandated by the Delhi High Court in W.P.C. No. 7743/2019, the DGAP calculated an incremental ITC ratio increase of 2.43% (post-GST ratio of 7.88% minus pre-GST ratio of 5.45%). This ratio was applied to the post-GST purchase value of ₹17,29,33,128/-, resulting in total project savings of ₹42,02,275/-. Based on the total sold area of 25,705 sq. ft., the per sq. ft. benefit was determined at ₹89.58.
