2024 (10) TMI 113

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....vestigation conducted by the DGAP are as under- i. The DGAP had submitted an Investigation Report dated 15.12.2021 under Rule 129 of the CGST Rules, 2017, before the National Anti-profiteering Authority (NAA) in the project "Ireo Waterfront" of the Respondent. ii. Thereafter, w.e.f. 01.12.2022, mandate to examine profiteering was vested with Competition Commission of India (CCI), as per the Notification No. 23/2022-Central Tax dated 23.11.2022 issued by Central Board of Indirect Taxes and Customs, Department of Revenue, Ministry of Finance. iii. The CCI went through the above Investigation Report dated 15.12.2021 and passed an Interim Order No. 04/2023 dated 31.07.2023 under the provisions of Rule 133 (4) of the CGST Rules, 2017 direc....

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....rged @ 5%. C. Sample copies of Invoices raised during the F.Y. 2022-23 and 2023-24 on which GST was charged @ 5%. d. Details of ITC reversal in terms of Notification No. 03/2019-(Central Rate) dated 29.03.2019) along with the DRC-03 form. e. Summary of GSTR-3B for the year 2017-2018 and 2018-19. f. Copy of electronic credit ledger for the period April 2017 to 05 June 2024. viii. The DGAP has stated that the directions received from CCI, various replies of the Respondent and the documents/evidence on record had been carefully scrutinised. The main issues for determination were:- (i) Whether there was benefit of reduction in the rate of tax or ITC on the supply of construction service by the Respondent, on implementation of GST w.....

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....isions of the new scheme including transitional provisions would be applied. xi. The DGAP has observed from the ST-3 returns that the closing balance of Cenvat Credit was Rs. 78,53,983/-on 30.06.2017 which the Respondent had carried forward from the pre-GST period in TRAN-1 Form. The Respondent had also submitted the copies of DRC-03 Forms of ARN:AD03032300965IO dated 30.03.2023 for the F.Y.2017-18 (Rs. 51,19,954/-) and ARN: AD030323009654I dated 30.03.2023 for the F.Y.2018-19 (Rs. 2,42,502/-) for reversal of transitional ITC of Rs. 53,62,456/-for the F.Y. 2017-2018 and F.Y. 2018-2019 as it pertained to the credit which was transitioned by the Respondent from the previous tax regime vide Form GST TRAN-1. This transitional ITC was reversed....

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....5,907 -5,320 -341,045 -5.907 Aug-18 4,768 102,009 102,009 -4,768 -102,009 -102,009 - - - Sep-18 - 145,336 145.336 - -369,499 -369,499 - -224,163 -224,163 Oct-18 - - - - - - - - - Nov-18 - - - - - - - - - Dec-18 - - - -1,015,212 -341,072 -341,072 -1,015,212 -341,072 -341,072 Jan-19 - - - - - - - - - Feb-19 - - - - - - - - - Mar-19 133,981 - - - - - 133,981 - - Total 1,724,788 8,824,884 970,901 -2,475,855 -1,630,809 -1,295,671 -751,067 7,194,075 -324,770 Net ITC available as per Consolidated GSTR3B returns (Annually) Period Integrated Tax/IGST Central Tax/CGST State/UT Tax/UGST 2017-18 135,484 21,984 21,984 2018-19 -886,551 -681,892 -346,....

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....the ITC availed as of March 2019. As per the judgment of the Hon'ble High Court of Delhi in the matters of determination of profiteering in the real estate sector the savings made by the suppliers of services on account of introduction of GST needed to be passed on to the recipients of services which needed to be determined by calculating any ITC under GST which had become eligible to be taken as credit and had been availed and utilized by the suppliers of services to discharge their GST liability on provision of output services. However, the net input tax availment as on 31.03.2019 being negative as evidenced by the GSTR-3B returns filed for the relevant period as explained above, there was no net ITC availed by the Respondent in post-GST ....