2026-VIL-55-GSTAT-DEL-NAPA
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  2. 2026-VIL-55-GSTAT-DEL-NAPA

SGST Tribunal

GST - Anti-Profiteering - Contravention of Section 171 of CGST Act - Liability to pass on benefit of Input Tax Credit to homebuyers - After reinvestigation pursuant to remand, DGAP determined that Respondent had collected higher amounts from homebuyers without passing on the full benefit of additional ITC available under GST, thereby profiteering - Whether Respondent has passed on the benefit of additional ITC to homebuyers in accordance with statute - HELD - Respondent has contravened the provisions of Section 171 of the CGST Act, 2017 to the extent that Respondent has not passed on the benefit of Input Tax Credit amount to 25 eligible recipients. While Respondent claimed to have passed on ITC benefit amounting to 459 homebuyers through discount at 7 percent, the amount passed on was less than the profiteering amount calculated for 25 buyers - Respondent is liable to pass on the said amount along with interest at the rate of 18 percent per annum from 01.07.2017 (the date CGST Act came into force) to these eligible recipients - Respondent is also liable to pay penalty equivalent to 10 percent of the profiteered amount under Section 171(3A) of the CGST Act, 2017, provided such penalty shall not be leviable if the profiteered amount is deposited within 30 days of the date of this order - The methodology adopted by DGAP for computation of profiteering was consistent with Section 171 of the CGST Act and correctly applied. Submissions of Respondent regarding waiver of interest or computation from alternative dates are rejected - Respondent is directed to pay the determined profiteering amount along with interest and penalty as held and the matter is closed – Ordered accordingly
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