2026-VIL-49-GSTAT-DEL-NAPA
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  2. 2026-VIL-49-GSTAT-DEL-NAPA

SGST Tribunal

GST - Anti-Profiteering - Non-passing of benefit of Input Tax Credit in Real Estate Project - Applicability of Anti-profiteering provisions despite subsequent notification curtailing fresh requests - Complainant purchased flat in residential project "Morning Raaga" developed by appellant and alleged that appellant charged complete twelve percent GST in 2017 without passing on benefit of ITC through commensurate reduction in price - Whether appellant has contravened provisions of Section 171(1) of CGST Act by failing to pass on ITC benefit and whether proceedings maintainable in light of Notification No.19/2024-Central Tax dated 30.09.2024 - HELD - The Section 171(1) casts statutory obligation on every registered person to pass on benefit of ITC to recipients by way of commensurate reduction in prices. Investigation revealed that during pre-GST period no eligible CENVAT credit was available but in post-GST period appellant became entitled to avail ITC of GST on inputs and input services used in construction - DGAP determined that appellant availed ITC amounting to Rs.1,73,84,508 representing 10.63 percent of purchase value during post-GST period. Upon applying additional ITC benefit of 10.63 percent to purchase value and apportioning on basis of saleable area the benefit worked out to Rs.80.94 per square foot resulting in base profiteered amount of Rs.84,94,491. After addition of GST at 12 percent total profiteered amount was Rs.95,13,829 - Appellant failed to place material on record demonstrating error in revised computation or that quantified benefit was actually passed on to homebuyers. Notification No.19/2024 merely restricts acceptance of new requests after specified date and does not affect proceedings already commenced before competent authority. Mere pendency of challenge to constitutional validity before higher forum does not operate as stay of proceedings unless competent court issues specific stay order. Appellant has neither challenged provisions before any court nor obtained interim order or stay against present proceedings - Appellant is held to have contravened Section 171(1) and is directed to pass on profiteered amount along with 18% interest to eligible homebuyers. No penalty imposed as period of contravention does not extend beyond 01.01.2020 – Ordered accordingly
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