DG Anti Profiteering Vs Arun Excello Constructions LLP (GSTAT)
The GST Appellate Tribunal (GSTAT) examined an anti-profiteering complaint concerning a residential project known as “Compact Homes–Narmada,” developed by the respondent. The project consisted of 336 residential units with a total saleable area of 2,07,720 square feet, and all flats were booked before project completion. The investigation covered the period from 1 April 2017 to 31 September 2024. The complaint alleged that the respondent had failed to pass on the benefit of Input Tax Credit (ITC) to a homebuyer after the introduction of GST, contrary to Section 171 of the CGST Act, 2017.
Following a reference from the Standing Committee on Anti-Profiteering, the Directorate General of Anti-Profiteering (DGAP) conducted an investigation. The respondent denied the allegations and furnished documents and explanations. Upon examination, the DGAP found that the ratio of credit availed to purchase value was 14.50% during the pre-GST period and 14.28% during the post-GST period. Since the ratio had declined by 0.22%, the DGAP concluded that no additional ITC benefit accrued to the respondent after GST implementation and, therefore, no benefit was required to be passed on to homebuyers. It consequently held that there was no contravention of Section 171 of the CGST Act.
