DG Anti Profiteering Vs Oxford Realty LLP (GSTAT)
The proceedings arose from applications filed under Rule 128 of the Central Goods and Services Tax Rules, 2017 alleging that Oxford Realty LLP had failed to pass on the benefit of additional Input Tax Credit (ITC) to purchasers of residential units in its “Godrej Infinity” project after the introduction of GST from 01.07.2017, in violation of Section 171 of the CGST Act, 2017. The Standing Committee on Anti-Profiteering referred the matter to the Director General of Anti-Profiteering (DGAP) for investigation.
The DGAP initially investigated the matter and submitted a report on 29.01.2021 using the ITC-to-turnover methodology. As no order was passed before the National Anti-Profiteering Authority ceased functioning, the Competition Commission of India remanded the matter to the DGAP following the Delhi High Court’s judgment in Reckitt Benckiser India Private Limited v. Union of India, which prescribed a different methodology based on project-wise GST savings and per square foot benefit. A fresh investigation covering the period from 01.07.2017 to 31.03.2024 resulted in the DGAP’s report dated 22.01.2025. Applying the revised methodology, the DGAP determined an additional ITC benefit of 1.57%, computed a total profiteered amount of Rs. 4,64,04,940 including GST, and, after considering the Respondent’s claim of benefits already passed on, arrived at a net alleged profiteering of Rs. 40,99,917 relating to 128 homebuyers.
