Case Law Details
Sudhir Kumar Jain Vs DLF Limited (NAA)
The Applicant No. 1 has contended that the Respondent has wrongly charged GST @18% on the PLC on the sale of flat to him after issue of Completion Certificate. In this regard, it is pertinent to mention that as per the provisions of Section 171 of the CGST Act, 2017 read with Rule 127 and 133 of the CGST Rules, 2017, this Authority has only been mandated to ensure that both the benefits of tax rate reduction and ITC are passed on to the customers. Therefore, this Authority has no mandate to look into the matter whether the Respondent has wrongly charged GST from the Applicant No. 1 on the PLC. Therefore, the Applicant No. 1 may take up the matter with the jurisdictional CGST/ SGST Authorities to settle his above grievance.
It is also apparent from the perusal of Table-`B’ supra that the DGAP has calculated the ratio of CENVAT Credit to turnover as 26.85% for the pre-GST period w.e.f. 01.04.2016 to 30.06.2017 and ratio of ITC to turnover for the post-GST period from 01.07.2017 to 31.07.2019 as 26.14%. It is also revealed from the above Report of the DGAP that the Respondent has received the Completion Certificate on 17.07.2017 in respect of the above project. Since, the Respondent has received the Completion Certificate on 17.07.2017, the period of investigation should have been restricted up to 16.07.2017 and the investigation should not have been conducted up to 31.07.2019 unless there were justifiable grounds to do so. However, no such grounds have been mentioned by the DGAP in his Report.
It is also evident from Table-B supra that the DGAP while computing the ratio of ITC to turnover for the post-GST regime has considered the ITC availed by the Respondent for the period from 01.07.2017 to 31.07.2019. Since, the Completion Certificate was received by the Respondent on 17.07.2017, the amount of ITC availed/available to the Respondent in the post-GST regime should have been considered up to 16.07.2019 and not up to 31.07.2019.
Based on the above grounds the ratio of ITC to turnover for the period w.e.f. 01.07.2017 to 31.07.2019 for the post-GST period computed by the DGAP cannot be relied upon. Accordingly, the ratio of ITC to turnover w.e.f. 01.07.2017 to 16.07.2019 for the post GST period is required to be recomputed by the DGAP. In case it is to be computed up to 31.07.2019 the grounds thereof are required to be mentioned.
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