With the introduction of GST, a construction service provider...

With the introduction of GST, a construction service provider received additional input tax credit on goods and input services and was required to pass on the commensurate benefit to homebuyers under anti-profiteering principles. The Tribunal upheld the revised computation comparing pre-GST and post-GST ITC to construction cost, rejected exclusion of input-service credit, and accepted price adjustment as a valid mode of passing on benefit. It also held that the balance profiteered amount had to be returned with the corresponding GST component, since collections from buyers were inclusive of GST, and interest at 18% per annum applied from the dates of collection until refund. Penalty under Section 171(3A) was found attracted for the post-commencement period.