Anti-profiteering claim rejected where GST-era project data showed no incremental input tax credit benefit to pass on.

The Tribunal examined whether the developer had profiteered by failing to pass on input tax credit benefits to a flat purchaser under the anti-profiteering provisions. It found that the project, booking, agreements, payments, approvals, and registration all fell within the GST era, and the DGAP's figures showed the credit-to-purchase-value ratio did not increase in a manner requiring any additional benefit to be passed on. The Tribunal also held that the 1% affordable housing rate notified in March 2019 did not apply on the facts. No contravention of the anti-profiteering rule was made out, and the profiteering allegation was rejected.

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Issues: Whether the respondent had profiteered by not passing on the benefit of input tax credit to the flat purchaser under section 171 of the Central Goods and Services Tax Act, 2017.

Analysis: The Tribunal found that the project activities, agreement, booking, and payment were undertaken in the GST era, and the relevant approvals and registration were also obtained in that period. The DGAP's computation showed that the ratio of credit availed to purchase value decreased from 14.50% in the pre-GST period to 14.28% in the GST regime, indicating no incremental benefit that required passing on. The Tribunal also held that the 1% affordable housing rate introduced by Notification No. 3/2019-Central Tax (Rate) dated 29.03.2019 was not applicable to the respondent's case.

Conclusion: No contravention of section 171 of the Central Goods and Services Tax Act, 2017 was made out, and the allegation of profiteering was rejected.

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