Pass-through of input tax credit confirmed after DGAP verification and certified payments showing benefit reached eligible home buyers.

Whether the respondent complied with the statutory obligation to pass on additional input tax credit to eligible home buyers was assessed by comparing pre and post GST input tax credit ratios and calculating the base profiteered amount; the analysis relied on DGAP calculations, verified payments to buyers, a Chartered Accountant's certificate, and subsequent payments with interest to remaining buyers. The Tribunal accepted the DGAP report and the verified documentary and payment evidence, concluding the respondent satisfied the pass through obligation and disposing of the proceedings in the respondent's favour.

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Issues: Whether the Respondent has complied with the obligation under Section 171 of the Central Goods and Services Tax Act, 2017 by passing on the benefit of additional input tax credit to eligible home-buyers.

Analysis: The Tribunal examined the DGAP's calculations of the ratio of input tax credit to purchase value for pre-GST and post-GST periods and the DGAP's determination of the base profiteered amount and consequent total amount including GST. The Tribunal also considered the certified details submitted by the Respondent, including the Chartered Accountant's certificate and the payments verified by the DGAP showing amounts passed on to eligible buyers, as well as the subsequent payment and interest made to the remaining seven buyers which was verified by the DGAP.

Conclusion: The Respondent has complied with the obligation under Section 171 of the Central Goods and Services Tax Act, 2017 by passing on the benefit of additional input tax credit to the eligible home-buyers; the DGAP report is accepted and the proceedings are disposed of in favour of the Respondent.

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