TaxTMI 
TaxTMI 
2024 (1) TMI 868
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....Service Tax (CGST) Rules, 2017. Applicant No. 1 alleged that the Respondent had not passed on the benefit of input tax credit (ITC) to him by way of commensurate reduction in the price of the flat purchased by him in the Respondent's project "Galaxy". The brief facts of the case and findings of investigation conducted by the DGAP are as follows:- i. A reference was received from the Standing Committee on Anti-profiteering on 14.03.2022 on which a Notice under Rule 129 of the CGST Rules was issued to the Respondent by the DGAP on 24.03.2022, calling upon him to reply as to whether he admitted that the benefit of ITC had not been passed on to the Applicant No. 1 by way of commensurate reduction in price and if so, to suo moto det....
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...."Galaxy" was started in the year 2018 and got commencement certificate on 23.08.2018, which could be seen from RERA documents/purchase register and other statutory documents. He had followed all instructions and notifications issued by the GST council from time to time. Further the Respondent stated that he opted for new scheme of GST @ 1% from 01.04.2019 in terms of Notification no. 03/2019-Central Tax (Rate) dated 29.03.2019. (c) The Respondent submitted that the Applicant No. 1 had withdrawn his complaint against him and the same was informed to the DGAP vide e-mails dated 26.03.2022 and 12.08.2022. v. The DGAP found from the verification/scrutiny of documents submitted by the Respondent and his replies that there was n....
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....y the Respondent that the allotment of units, start of construction activities etc. had taken place in post-GST period and the date of first booking of flat was 27.10.2018. Hence, the base price in pre-GST era could not be compared with the base price in post-GST era to compute ITC benefit. The DGAP has also observed that the price charged for the above residential flat was for a new project developed and constructed by the Respondent after implementation of GST. Hence, the anti-profiteering provisions did not apply to the impugned project under investigation. vii. Section 171 of the Central Goods and Services Tax Act, 2017 came into play in the event when there was a reduction in the rate of tax or there was a benefit of ITC. In t....
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....te. 4. This Commission has carefully perused the DGAP's Report dated 12.09.2022 and the documents placed on record. The Commission needs to determine as to whether there was any reduction in the GST rate or the benefit of ITC and whether the benefit of rate reduction or ITC was passed on or not to the recipients as provided under Section 171 of the CGST Act, 2017. 5. It is clear from the DGAP's Report that the Respondent had started the above project in the post-GST regime as the commencement certificate was issued to him on 23.08.2018 by the Pune Municipal Corporation and there wasn't any demand raised by the Respondent in the pre-GST regime. There was no price history of the units sold in the pre-GST regime that could be....