2026 (1) TMI 378 - AT - GST

Passing on input tax credit benefits to homebuyers in housing project, DGAP anti-profiteering findings accepted; proceedings closed.

The dominant issue was whether the respondent had failed to pass on the benefit of input tax credit to homebuyers, warranting acceptance of the ... ITC benefit not passed to 21 homebuyers - Respondent filed written submission to the effect that to avoid further litigation the Respondent unconditionally accept the findings, observations and conclusions contained in the report of DGAP without any objection - HELD THAT:- In view of the undertaking given by learned counsel for the Respondent, no further dispute survives in the matter. The Report of the DGAP is liable to be accepted. The report of DGAP dated 07.11.2025 is accordingly accepted in view of the undertaking given by the Respondent. Proceedings concluded. Pursuant to a reference by the Standing Committee, DGAP initiated an anti-profiteering investigation against the respondent. Based on examination of relevant documents, DGAP concluded that, upon implementation of GST, the respondent accrued total input tax credit (ITC) benefit of Rs. 10,49,43,145/- plus GST @ 8% amounting to Rs. 83,95,452/-, totaling Rs. 11,33,38,597/-. DGAP recorded that the respondent had already passed on ITC benefit of Rs. 13,19,64,459/- to 1177 eligible buyers, but 'No benefit has been passed to 21 homebuyers,' leaving ITC benefit of Rs. 20,21,440/- still required to be passed on to those 21 homebuyers. The respondent, through written submissions, 'unconditionally accept[ed] the findings, observations and conclusions' of the DGAP report and undertook to pass on Rs. 20,21,440/- to the 21 homebuyers. In view of this undertaking, the tribunal held that 'no further dispute survives,' and 'The Report of the DGAP is liable to be accepted,' accordingly accepting the DGAP report dated 07.11.2025 and directing transmission to the concerned tax authorities for compliance.