Case Law Details
Shubham Saxena Vs New World Realty LLP (NAA)
The Present Report dated 30.12.2020 had been received from the Applicant No. 4 i.e. the Director-General of Anti-Profiteering (1)GAP) alter a detailed investigation under Rule 129(6) of the Central Goods & Service Tax (CGST) Rules, 2017. alleging profiteering by Respondent in respect of purchase of flats in the Respondent’s project “Tinsel Town”. The Applicant No. 1. 2 and 3 vide their complaint had alleged that the Respondent had not passed on the benefit of ITC to him by way of commensurate reduction in prices after implementation of GST w.e.f. 01.07.2017, in terms of Section 171 of the Central Goods and Services ‘fax Act. 2017.
The Respondent is in the business of the supply of Construction services and he has executed project by the name of Tinsel Town in Pune. Additional Input tax Credit was available to the Respondent for the project due implementation of the GST wef 01.07.2017 which was required to passed on in terms of Section 171 of the CGST Act, 2017.
On the issue of reduction in the tax rate, it is apparent from the DGAP’s Report that there has been no reduction in the rate of tax in the post GST period. I fence. the only issue to be examined is as to whether there was any net benefit of ITC with the introduction of GST.
We finds that, the ITC, as a percentage of the turnover, that was available to the Respondent during the pre-GST period (April-2016 to June-2017) was 1.15%, whereas, during the post-GST period (July-2017 to Mar, 2019), it was 7.67%. This confirms that in the post-GST period, the Respondent has been benefited from additional ITC to the tune of 632% (7.67%-1.15%) of his turnover and the same is required to be passed on by him to the recipients of supply, including the Applicant No. 1.2 & 3. The Authority finds that the computation of the amount of ITC benefit to be passed on by the Respondent to the eligible recipients works out to Rs. 2.03.03.720/- The DGAP has calculated the amount of ITC benefit to he passed on to all the eligible recipients as Rs.2,03,03,720/- on the basis of the information supplied by the Respondent.
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