No GST Profiteering Found as Builder Already Passed Tax Benefits to Homebuyer

Fact of the Cases

A complaint was filed by Homebuyers alleging that Samridhi Reality Pvt Ltd. Did not pass on the benefit of additional Input Tax Credit (ITC). After The Introduction of GST As required under section 171 of the CGST Act. The matter was investigated. By the Director Journal of Anti-Property (DGAP), Who exam whether the builder reduces the price in proportion to increasing the ITC benefit. The case went through multiple stages, including reinvestigation. Changes in methodology following judicial guidelines.

ISSUE

Whether the responder (Builder) failed to pass on the benefit of additional ITC to homebuyers, Thereby Indulging in profiteering In violation of section 171 of the CGST Act, 2017.

COURT OBSERVATION

The Tribunal observed that although there was an increase in ITC benefit post-GST, the respondent had already passed on a substantial amount of benefit of Rs 16,45,87,489/- to the homebuyer. It also noted that the Complainant themselves acknowledged the receipt of the due benefit and no other buyers raised objections the DJAP revised methodology and findings were found to be proper and reliable.

JUDGEMENT 

The Tribunal accepted the DGAP Report and held:

• The respondent did not violate section 171 of CGST Act.
• The required ITC Benefit had already been passed on the buyer.
• The matter was closed with no further liability on the respondent.

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