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of <h1>Profiteering allegation over reduced GST rate investigated; factual verification found no tax evasion, proceedings closed.</h1> Allegation of profiteering by collecting tax at a lower rate was examined through taxpayer statements, verification of financial records and corresponding ... Profiteering - short payment /evasion of tax - collection of tax at 5% instead of 12% - HELD THAT:- Considering the statement of the taxpayer, verification of relevant financial records and corresponding returns, evasion of tax in the present issue is not substantiated. In that view of the matter, after receipt of the Minutes of the Karnataka State Screening Committee notice was issued to the original complainant to file objections, if any, to such findings. He has not filed any written objections - there are no illegality / irregularity in the Minutes of the Karnataka Screening Committee Proceedings is therefore closed. Issues: Whether the allegation of profiteering / short payment or evasion of GST by the developer arising from non-issuance of invoices and collection of GST at 5% (instead of declared 12%) in respect of the project Raja Ritz Avenue Phase-I is substantiated.Analysis: The Screening Committee considered the investigation and enforcement verification, audit reports and books of account for relevant periods; noted that the project commenced before 01.04.2019 and the developer had opted for the pre-01.04.2019 tax regime under Notification No.03/2019 GST (Rate) dated 29.03.2019 while collecting GST from buyers at 5%; verified sample sale deeds, payment vouchers and customer-wise ledgers showing declared sale consideration inclusive of GST@5%; reviewed corresponding returns and audit reports which did not disclose short payment of tax; and observed issuance of DRC-01 on related record verification while the taxpayer overall discharged reported tax liabilities. The matter was placed for objections to the original complainant who filed none. The Tribunal examined the Screening Committee record, investigation and audit findings and found no substantiation of tax evasion or profiteering based on the verified financial records and returns.Conclusion: The allegation of profiteering / short payment of GST is not substantiated and the finding is in favour of the assessee.
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