TaxTMI 
TaxTMI 
2026 (1) TMI 1209
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....ereinafter referred to as the "Respondent", Waterford Building, C302, 3rd Floor, Juhu Lane, Above Navnit Motors, Andheri West, Mumbai - 400058, with GST Registration Number 27AAACT0197J1Z6, by way of not passing on the benefit of input tax credit through commensurate reduction in price in the Respondent's project "Auris Serenity Tower-2" located at Malad West, Mumbai (Maharashtra RERA No. P51800001413), in alleged contravention of Section 171 of the CGST Act, 2017. 2. The Standing Committee on Anti-Profiteering, having examined the Applicants' complaints under Rule 128 of the CGST Rules, formed the opinion that prima facie cases of profiteering existed. Consequently, the matter was referred to the Directorate General of Anti-Profiteering for detailed investigation to collect all necessary evidence to determine whether the benefit of input tax credit had been passed on by the Respondent to its customers. The DGAP accordingly initiated investigation and furnished its initial investigation report dated 28.07.2021, inter alia concluding that Section 171 of the CGST Act, 2017 had been contravened by the Respondent in the present case. 3. Subsequently, upon consideration of....
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....es Tax period, he is entitled to the benefit of Input Tax Credit on the material which has been purchased in respect of this flat during the post-Goods and Services Tax period and on which benefit of Input Tax Credit has been availed by the builder. The builder has to reduce the price commensurately and pass on the benefit." (c) "If the construction of the flat is started in the pre-Goods and Services Tax period and its construction was continued in the post-Goods and Services Tax period and it was purchased by the consumer by paying the full amount of price upfront in the pre-Goods and Services Tax period, the buyer is entitled to claim benefit of Input Tax Credit on the taxes paid on the construction material purchased by the builder in the post-Goods and Services Tax period during which he has been given benefit of Input Tax Credit on the taxes on which Input Tax Credit was not available in the pre-Goods and Services Tax and cost of such taxes has been built in the price of the flat by the builder." (d) "If the flat is constructed in the post-Goods and Services Tax period and it is purchased after construction being complete by making upfront payment of the ful....
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....documents. The Respondent was provided an opportunity to inspect the non-confidential evidence and information furnished by the Applicants during the period 29.04.2024 to 30.04.2024, though such opportunity was not availed by the Respondent. 5. In response to the Notice dated 8.04.2024, the Respondent, vide multiple letters and email communications dated 30.05.2024, 18.06.2024, 18.07.2024, 23.09.2024, 07.12.2024, and 18.09.2025, furnished the information and records called for in the said Notice, as summarised in the DGAP's report dated 23.09.2025. 6. The DGAP, in its final report dated 23.09.2025, records that upon perusal of the project records and RERA documentation, it ascertained that the Auris Serenity Tower-2 project comprises a total of 340 residential flats. The Occupancy Certificate for the project was issued on 20.12.2021. The DGAP's examination further revealed that the total saleable area of all 340 units is 3,69,171 square feet. All 340 flats were sold prior to the issuance of the Occupancy Certificate, and consequently, all 340 units having a total saleable area of 3,69,171 square feet fall within the scope of investigation as eligible units. 7. In accor....
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....rea-based methodology endorsed by the High Court in Para 129, the DGAP has calculated the total monetary benefit accruing to the Respondent from the introduction of GST in the post-GST period as follows: • Increase in ITC ratio: 0.43% • Total purchase value in the post-GST period: Rs. 2,07,56,95,957/- • Total project-level savings: Rs. 89,88,997/- [Computation: 0.43% x Rs. 2,07,56,95,957/-] 8.5 The total saleable area of the Auris Serenity Tower-2 project is 3,69,171 square feet, as per certified architectural documentation and project records. Dividing the total project-level savings by the total saleable area yields the per-square-foot benefit accruing uniformly to all eligible buyers: • Per-square-foot benefit: Rs. 24.35 per square foot [Computation: Rs. 89,88,997/- / 3,69,171 sq. ft.] 8.6 The total saleable area of eligible units sold prior to the Occupancy Certificate is 3,69,171 square feet, being the entire project, as per Chartered Accountant-certified details submitted by the Respondent. Applying the uniform per square-foot benefit to all eligible buyers: • Base profiteering amount: Rs. 89,88,997/- [Com....