DG Anti Profiteering Vs Panchsheel Buildtech Pvt. Ltd. (GSTAT)
The proceedings arose from an investigation report dated 31.07.2025 submitted by the Director General of Anti-Profiteering (DGAP) under Section 171 of the CGST Act, 2017 read with Rule 129 of the CGST Rules. The investigation was initiated based on complaints filed by multiple homebuyers alleging profiteering by Panchsheel Buildtech Pvt. Ltd. in respect of construction services for the projects “Panchsheel Greens,” “Pebbles,” and “Hynish Tower-10.” The matter was referred by the Standing Committee on Anti-Profiteering and initially investigated, with a report submitted on 20.07.2021 to the erstwhile National Anti-Profiteering Authority. Subsequently, the Competition Commission of India remanded the case to DGAP for re-investigation pursuant to a Delhi High Court judgment dated 29.01.2024. The investigation period covered 01.07.2017 to 31.03.2024.
For Project “Pebbles,” DGAP compared the ratio of CENVAT/input tax credit to purchase value in the pre-GST and post-GST periods. The ratio increased from 10.82% to 11.75%, showing an additional benefit of 0.93%. Based on post-GST purchase value, total savings from additional ITC were calculated at Rs. 32,80,195. Adding GST at 12%, total profiteering amounted to Rs. 36,73,818, to be passed on to 250 eligible buyers.
For Project “Hynish Tower-10,” the credit ratio increased from 8.66% pre-GST to 13.23% post-GST, indicating a 4.57% benefit. Total savings were computed at Rs. 26,50,341, and with GST at 12%, total profiteering was determined at Rs. 29,68,382, payable to 161 eligible buyers.
