DGAP Vs Umang Realtech Private Limited (GSTAT)
The matter was heard in physical mode before the Goods and Services Tax Appellate Tribunal. The Director General of Anti-Profiteering (DGAP) was represented by the Authorized Departmental Representative, while the respondent company was represented by its Chartered Accountant and Director.
The proceedings originated from an application dated 08.01.2019 filed by the Flat Buyers Association under Rule 128 of the Central Goods and Services Tax Rules, 2017. The application alleged profiteering in relation to construction services provided for the residential project “Winter Hills-77” located at Sector-77, Gurgaon. The allegation was that the benefit of input tax credit (ITC) had not been properly passed on to the flat buyers.
The Standing Committee on Anti-Profiteering considered the application in its meeting dated 11.03.2019 and forwarded the matter to the DGAP for investigation. The DGAP conducted the investigation and submitted its report dated 13.12.2024, which was received on 17.12.2024. In the report, the DGAP concluded that the respondent had profiteered an amount of ₹4,16,85,896. GST at the rate of 12% amounting to ₹50,02,308 was computed on this amount, taking the total to ₹4,66,88,204. The report also recorded that the issue of passing on the benefit of ITC had been examined in detail and that there appeared to be no remaining ITC benefit required to be passed on to the buyers.
On 13.12.2025, the Tribunal issued a notice to the Secretary of the Flats Buyers Association of Winter Hills-77, Gurgaon, seeking clarification on whether the ITC benefit had been received by the buyers. In response, a letter dated 27.12.2025 from the Winter Hills-77 Apartment Owners Association, signed by its General Secretary, was received on 28.12.2025. The Association stated that the complaint had already been settled between the flat owners and the respondent company through its Interim Resolution Professional. It further stated that appropriate GST ITC benefits or corresponding reductions in prices had been allowed to all allottees in terms of a Memorandum of Understanding dated 05.10.2019, at the time of handing over possession of the flats.
A copy of the Memorandum of Understanding was produced by the respondent and taken on record. After hearing the Authorized Departmental Representative and examining the documents, the Tribunal recorded its satisfaction that the dispute relating to the passing on of ITC benefits to the flat buyers had been resolved. Accordingly, the DGAP report was accepted and the matter was closed.
FULL TEXT OF THE JUDGMENT/ORDER OF GSTAT
The matter was taken up in physical mode. Ms. Geetika Chib, Learned AAD – Authorized Representative assisted by Shri Awanindra Kumar appeared on behalf of the DGAP.
Shri Naveen Aggarwal, CA and Shri Mohan Chaudhary, Director of the Respondent Company appeared for the Respondent.
This case was initiated on an application dated 08.01.2019, submitted by the flat buyers association under Rule 128 of the Central Goods and Services Tax Rules, 2017, alleging profiteering in respect of the Construction Services provided by M/s. Umang Realtech Pvt. Ltd., with respect to the project “Winter Hills-77” located at Sector -77, Revenue Estate Village Shikohpur, Gurgaon Manesar Urban Complex, Gurgaon – 122001.
The application was taken up by the Standing Committee on Anti-Profiteering and as per its meeting dated 11.03.2019, it decided to forward the same to the DGAP to conduct an investigation in the matter.
Accordingly, investigation was taken up by the DGAP. It submitted its report dated 13.12.2024 received on 17.12.2024, reported that the Respondent in the matter has profiteered an amount Rs. 4,16,85,896/-. Therefore, he is liable to pay the aforesaid amount with an GST @ 12%, totalling to Rs. 4,66,88,204/-. However, it has further reported that on the basis of above investigation report, it is concluded that the Noticee has been profiteered by an amount of Rs. 4,16,85,896/- plus GST @ 12% i.e., 50,02,308/-, totaling to Rs. 4,66,88,204/- (as detailed in para 21 and 22 in the DGAP report). The issue of passing of the benefit has already been discussed in paras 25 to 28 in the DGAP Report. Thus, it appears that there is no remaining benefit of ITC to be passed on by the Respondent to its buyers.
On dated 13.12.2025, this Tribunal issued notice to the Applicant i.e. Secretary of the “Flats Buyers Association of Winter Hills-77, Gurgaon”, directing them to file written submissions clarifying that whether they have received ITC benefit or not.
In reply, letter dated 27.12.2025 of Winter Hills-77 Apartment Owner Association signed by General Secretary was received by this office through e-mail on 28.12.2025. The letter signed by General Secretary for Winter Hills-77 Apartment Owners Association stated that the subject of complaint has already been settled between flat owners & Umang Realtech Pvt. Ltd., through its Interim Resolution Professional. He further stated that appropriate benefit of the GST ITC / Reduction in prices for the flat purchased by the Respective allottees have been allowed to them in terms of Memorandum of Understanding (MoU)dated 05.10.2019, at the time handing over the possession of the flats by Umang Realtors Pvt. Ltd. A copy of the MOU is produced by the Authorized Representative of the Respondent. The same is taken on record.
Hence, we are satisfied after hearing Learned AAD, and perusing the documents that the dispute relating to passing of the ITC benefit to flat buyers has been arrived at by the parties.
In that view of the matter, the report of the DGAP is accepted and matter is closed.
