Additional input tax credit available to a real-estate developer...

Additional input tax credit available to a real-estate developer after GST must be passed to eligible homebuyers through a commensurate reduction in price. Free structural upgrades, fittings or other collateral benefits cannot replace the prescribed price reduction, irrespective of their asserted value. Where higher consideration was collected inclusive of GST, the unpassed benefit includes the corresponding GST component and must be returned to homebuyers. The anti-profiteering framework also requires interest at 18 per cent per annum from collection of the higher amount until repayment. Penalty is not warranted where the relevant contravening conduct substantially concluded before the penalty provision came into force.