2026-VIL-114-GSTAT-DEL-NAPA
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SGST Tribunal

GST - Anti-profiteering - Non-passing of benefit of additional Input Tax Credit accruing upon implementation of GST in a real estate project - Respondent, discharging GST with availability of Input Tax Credit on construction of the project, became eligible post-GST to avail credit of tax paid on both inputs and input services, whereas in the pre-GST regime credit of excise duty on inputs was not available, resulting in an increase in the ratio of input tax credit to purchase value and consequent additional benefit accruing to the Respondent - Whether the Respondent has profiteered in contravention of Section 171 by not passing on the benefit of additional input tax credit by way of commensurate reduction in prices, and the quantum required to be passed on - HELD - Section 171(1) requires the benefit of input tax credit to be passed on to the recipient by way of commensurate reduction in prices - The revision in computation made by the DGAP, after taking into account the reversal of unutilised input tax credit by the Respondent, is in accordance with the facts and material on record and is accepted - The Respondent having accepted the revised computation and furnished flat-wise reconciliation of the amount attributable to each recipient in accordance with the area of the units and the benefit determined, such reconciliation is taken on record - The Respondent is required to return the amount not passed on by way of commensurate reduction in prices, together with interest from the date of collection of the higher amount till the date of return, in terms of the relevant provision of the CGST Rules, 2017 - Respondent directed to pass on the determined profiteered amount along with applicable GST and interest to the eligible homebuyers as per the flat-wise reconciliation, and to furnish an undertaking in respect of an amount adjusted against a buyer from whom payment is yet to be received – Ordered accordingly - Anti-profiteering - Leviability of penalty under Section 171(3A) of the CGST Act, 2017 for the period of investigation preceding the provision's commencement - Whether penalty is imposable upon the Respondent for profiteering determined for the period from 01.07.2017 to 31.03.2019 - HELD - Section 171(3A), which provides for imposition of penalty for profiteering, came into force only with effect from 01.01.2020 and was not in force during the period under investigation - No penalty under Section 171(3A) of the CGST Act, 2017 held imposable upon the Respondent in the present proceedings.
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