No GST Profiteering! Tribunal Closes Case After ITC Benefit Found Nil

An investigation was conducted by the Director General of Anti-Profiteering (DGAP) against M/s. Riddhi Siddhi Construction (the Respondent) to determine if the benefit of additional Input Tax Credit (ITC) was passed on to homebuyers following the introduction of GST. The investigation followed the methodology approved by the Hon’ble Delhi High Court in the Reckitt Benckiser case.

During the proceedings, the original applicant/ homebuyer informed the authorities via email that the GST-related matters had been settled with the builder at the time of taking possession and expressed no objection to the closure of the case.

Main Issue: Whether the Respondent contravened Section 171 of the CGST Act, 2017, by failing to pass on the benefits of Input Tax Credit to the recipients of the housing services.

GST Appellate Tribunal: The GST Appellate Tribunal (GSTAT) accepted the DGAP’s report, which concluded that no additional benefit of ITC had accrued to the Respondent after the implementation of GST. The Tribunal noted that the applicant had already settled their concerns with the builder and requested the closure of the matter.

Therefore, the Bench held that there was no contravention of Section 171 of the CGST Act. The proceedings against the Respondent were officially closed, and no liability for refund or penalty was established.

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