Anti-profiteering inquiry remanded for further verification of post-GST bookings and passing on of input tax credit benefit.

Additional input tax credit under anti-profiteering provisions was alleged to have been retained without commensurate price reduction, but the respondent contended that 70 flats were booked after GST and that those units were freshly negotiated. Because the DGAP clarification indicated that this claim required examination, the existing report was treated as requiring reconsideration. The Authority directed a further investigation under rule 133(4), extended the inquiry period up to 30.10.2020 or until issuance of the completion or occupancy certificate, whichever was earlier, and required verification of compliance in other projects, if any. No final finding on profiteering was returned.

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Issues: Whether the report of the Directorate General of Anti-Profiteering should be revisited and the matter sent back for further investigation, including verification of the claim that certain flats were booked after the introduction of GST and whether the benefit of additional input tax credit had been passed on by commensurate reduction in prices.

Analysis: The record showed that the report quantified additional input tax credit and alleged non-passing of benefit under section 171, but the respondent asserted that 70 flats were booked after GST and that the prices of those units were freshly negotiated. The clarification filed by the DGAP also noted that this claim required examination. In these circumstances, the existing report was treated as requiring reconsideration. The Authority therefore directed a further investigation under rule 133(4), extended the inquiry up to 30.10.2020 or till issuance of completion or occupancy certificate, whichever was earlier, and also directed verification of compliance in other projects, if any.

Conclusion: The matter was remanded for further investigation and no final finding was returned on the alleged profiteering.

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