2022 (10) TMI 367 - NAPA - GST

GST Profiteering Case: Ruparel Orion Ordered to Refund Rs. 1.45 Crore with 18% Interest Under Section 171

NAA investigated the Respondent's project 'Ruparel Orion' for potential GST profiteering from 01.07.2017 to 31.12.2019. The Authority confirmed ... Profiteering - project Ruparel Orion - contravention of provisions of Section 171 of the CGST Act, 2017 - HELD THAT:- The Authority has carefully examined the Report of the DGAP and the case records and it has been observed that the Respondent had developed only single project named as “Ruparel Orion” under the GSTIN 27AAECK9069N1ZQ which had already been investigated by the DGAP and the Authority had passed Order No.57/2022 dated 05.08.2022 under Section 171 of the CGST Act, 2017 in the instant project. Issues:1. Determination of profiteering by the Respondent in a specific project 'Ruparel Orion' from 01.07.2017 to 31.12.2019.2. Investigation directed by the National Anti-Profiteering Authority (NAA) into other projects under the same GST registration of the Respondent.3. Examination of whether the benefit of reduction in tax rate or Input Tax Credit (ITC) was passed on to consumers by the Respondent post-GST implementation.4. Verification of the Respondent's claim regarding having only one project, 'Ruparel Orion,' under the GSTIN.5. Analysis of the correctness of the Respondent's statement regarding RERA Registration and the jurisdiction of supply of construction services.Analysis:1. The NAA, in Order No. 57/2022 dated 05.08.2022, determined that the Respondent profiteered in the project 'Ruparel Orion' by Rs. 1,45,87,404 from 01.07.2017 to 31.12.2019. The NAA ordered the refund of the profiteered amount along with interest at 18% from the date of profiteering. The DGAP was directed to investigate other projects under the same GST registration for potential profiteering.2. The DGAP initiated an investigation covering the period from 01.07.2017 to 31.07.2022, focusing on whether the benefit of tax rate reduction or ITC was passed on to consumers by the Respondent. The Respondent claimed to have only one project, 'Ruparel Orion,' under the mentioned GSTIN. The NAA directed the DGAP to investigate all other projects under the same GST registration to ascertain if the benefit of ITC was passed on to buyers.3. The DGAP's investigation revealed that the Respondent indeed had only one project, 'Ruparel Orion,' which had already been investigated. The NAA had passed Order No. 57/2022 on 05.08.2022 confirming profiteering in this project. The Respondent's contention was found to be true, and further analysis of this project was deemed unnecessary.4. To verify the accuracy of the Respondent's claim regarding RERA Registration, the Maharashtra Real Estate Regulatory Authority's website was checked, confirming only one registered project. Additionally, the supply of construction services was observed to be limited to the State of Maharashtra based on the details submitted by the Respondent.5. After careful examination of the DGAP's report and case records, the Authority concluded that the Respondent had only one project, 'Ruparel Orion,' which had already been investigated. Therefore, the Authority passed Order No. 57/2022 on 05.08.2022 under Section 171 of the CGST Act, 2017 for this project. The Respondent and the DGAP were directed to be provided with a free copy of the order, and the case file was to be closed upon completion.