DG Anti Profiteering Vs Ireo Grace Realtech Pvt. Ltd. (GSTAT)
The proceedings arose from the DGAP investigation report dated 28.10.2024 under Section 171 of the Central Goods and Services Tax Act, 2017 (CGST Act), read with Rule 129 of the CGST Rules, 2017. The investigation followed a reference from the Standing Committee on Anti-Profiteering based on a complaint by Sh. Sandeep Bansal, Ms. Pratibha Bansal and Ms. Nupur Bansal alleging that M/s Ireo Grace Realtech Pvt. Ltd. had failed to pass on the benefit of Input Tax Credit (ITC) through a commensurate reduction in price after GST came into effect from 01.07.2017 in respect of the project “The Corridors” at Sector 67A, Gurgaon, Haryana.
An earlier DGAP report dated 21.02.2019 had concluded that the Respondent had contravened Section 171. The matter was remanded to the DGAP under Rule 133(4) through Investigation Order No. 14/2019 dated 21.10.2019, and a further report was submitted on 12.02.2020. The CCI subsequently directed further examination and, following the judgment of the Hon’ble High Court of Delhi dated 29.01.2024 in W.P.(C) No. 7743/2019 and connected matters, directed the DGAP on 07.05.2024 to re-investigate the matter in light of that judgment.
In its report dated 28.10.2024, the DGAP found that the ratio of ITC availed to purchase value was 4.66% in the pre-GST period and 4.54% in the post-GST period, representing a difference of (-)0.12%. The DGAP therefore observed that the ratio had not increased after introduction of GST and concluded that no additional ITC benefit had accrued to the Respondent.
