SECTION 171 - ANTI PROFITEERING

[NAMAN DOKANIA]

M/s XYZ Partnership firm unregistered in erstwhile act, but registered in GST as Builder enters to agreement with 2 flat buyers before GST and 3 flat buyers post GST with 100+GST for each flat..

But due to anti profiteering norms they offered discount to these flat buyers by the GST amount by charging just 100(inclusive of GST)

So, had he violated the provision of section 171 of the CGST Act?? Can you help me to quote any case law as because 171 is just commensurate reduction in prices and the price has been reduced by absorbing the gst amount in the offered rate.

AI Summary

Builder absorbing GST by reducing total price generally satisfies anti profiteering if tax/ITC benefits are passed to buyers.
Absorbing GST and reducing the total consideration by the tax amount ordinarily satisfies the commensurate reduction requirement under Section 171, provided the tax or ITC benefit has actually been passed to buyers; regulators will examine timing of supply, contract pricing (inclusive/exclusive), ITC claims, base price changes and whether any post supply tax or ITC benefit was retained by the supplier.