DGAP Vs Bengal Peerless Housing Development Company Ltd. (GSTAT)
The proceedings arose from an application filed under Rule 128 of the Central Goods and Services Tax Rules, 2017 by two flat purchasers alleging violation of Section 171 of the CGST Act, 2017 in relation to the project “AVIDIPTA-II.” The applicants contended that the developer failed to pass on the benefit of Input Tax Credit (ITC) accrued after implementation of GST from 01.07.2017 by way of commensurate price reduction for their respective flats.
The Standing Committee on Anti-Profiteering referred the matter to the Directorate General of Anti-Profiteering (DGAP) under Rule 129. In its report dated 25.06.2025, the DGAP concluded that no additional ITC benefit had accrued to the respondent post-GST. Notices were issued to the applicants inviting objections to the DGAP report; however, no objections were received. The matter was listed for hearing on two occasions, but none appeared for the applicants or the respondent. The Departmental Representative reiterated the findings of NIL profiteering.
It was observed that the project commenced entirely in the post-GST regime. All activities including advertisement, booking, allotment, agreements, and construction occurred after 01.07.2017. The RERA registration certificate showed that the project was registered on 08.02.2019, confirming its post-GST commencement.
