2026-VIL-44-GSTAT-DEL-NAPA
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  2. 2026-VIL-44-GSTAT-DEL-NAPA

SGST Tribunal

GST - Anti-Profiteering - Calculation of profiteered amount and passing on of benefit of ITC in real estate project - Methodology for computation of additional ITC benefit - Inclusion of GST on profiteered amount where benefit already passed by way of discount - DGAP investigation found that developer had passed on 95% benefit. Developer contended that reversal of ITC on unsold inventories, subsequent passing of remaining 5% benefit to home-buyers and applicability of GST on profiteered amount where benefit already passed by way of discount requires consideration - Whether DGAP correctly computed profiteered amount without considering ITC reversal on unsold inventories and when benefit of ITC already passed by way of discount to home-buyers - HELD - It is admitted fact that developer passed on 95% benefit of ITC to home-buyers. DGAP considered reversal of ITC but did not appreciate it in light of fact that developer was executing multiple projects simultaneously. Where ITC reversal relates to unsold inventories specifically attributable to project, it requires proper examination as it affects calculation of profiteered amount. Where developer already passed benefit of ITC to home-buyers by way of discount and reduced taxable value, imposition of GST at 12% on such profiteered amount requires examination. Subsequently passing on of remaining 5% benefit and cancellation of allotments of certain buyers require verification. Matter remanded to DGAP for further investigation on specific issues including proper consideration of reversal of ITC, applicability of GST on discount already provided, and verification of subsequent passing on of remaining benefit with opportunity of hearing to respondent – Ordered accordingly
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