2026-VIL-17-GSTAT-DEL-NAPA
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  2. 2026-VIL-17-GSTAT-DEL-NAPA

SGST Tribunal

GST - Anti-profiteering, Passing on of benefit of additional ITC to homebuyers - DGAP alleged that the respondent failed to pass on the benefit of ITC by way of commensurate reduction in prices to homebuyers in its residential project - Whether the respondent had derived any additional benefit of ITC consequent to the introduction of GST – HELD - Upon the introduction of GST, the respondent became entitled to avail ITC on both goods and input services, unlike the pre-GST regime where credit was restricted. The comparison of ITC in the pre-GST and post-GST periods showed that an additional benefit accrued to the respondent. In terms of Section 171 of the CGST Act 2017, such benefit is required to be passed on to the homebuyers by way of commensurate reduction in prices - The respondent's contention that ITC on input services should be excluded is rejected, as the benefit under GST includes ITC on both goods and services. The respondent had, at the time of implementation of GST, factored the anticipated ITC benefit into the pricing of flats, and to that extent, the benefit stood passed on through the pricing mechanism itself. However, the DGAP's revised computation and determined that the respondent profiteered a balance amount, which it is liable to pass on to the eligible recipients along with interest at 18% per annum - The respondent is directed to pass on the profiteered amount along with GST to the eligible homebuyers, with interest at the rate of 18% per annum from the date of collection of the higher amount till the date of refund. Penalty under Section 171(3A) of the CGST Act, 2017 is also attracted – Ordered accordingly
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GSTAT Appeal filed wrongly...
By CA Vivek Jalan

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