TaxTMI 
TaxTMI 
2026 (1) TMI 1328
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....an application filed by Shri Umesh Kumar Shukla, Flat No. E-1003, GH-01, PAN Oasis, Sector 70, Noida, Distt. Gautam Buddha Nagar, Uttar Pradesh - 201301, hereinafter referred to as the "Applicant", alleging profiteering in respect of construction services supplied by Ms. Pan Realtors Private Limited, hereinafter referred to as the "Respondent", S‑406, LGF, Greater Kailash‑II, New Delhi‑110048, with GST Registration Number 09AAFCP2034D1ZS, by way of not passing on the benefit of input tax credit through commensurate reduction in price in the Respondent's project "PAN Oasis" located at Sector 70, Noida, in alleged contravention of Section 171 of the CGST Act, 2017. 2. The Standing Committee on Anti-Profiteering, upon examination of the Applicant's complaint under Rule 128 of the Central Goods and Services Tax Rules, 2017, in its meeting held on 11.04.2019, forwarded the matter to the Director General of Anti-Profiteering (DGAP) for investigation. Pursuant thereto, the DGAP initiated an investigation and submitted its initial investigation report dated 31.01.2020 to the erstwhile National Anti-profiteering Authority (NAA). The Erstwhile NAA had issued an Order....
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....n of the flat had started in the pre-Goods and Services Tax period and continued/completed in the post-Goods and Services Tax period and a buyer purchased the flat by making full upfront payment in the post-Goods and Services 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 bee....
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.... of input tax credit had not been passed on to its customers by way of commensurate reduction in prices, and if so, to suo-moto determine the quantum thereof and indicate the same in its reply, along with furnishing all supporting documents. 5. The Director General of Anti-Profiteering (DGAP), in its final report dated 10.01.2025, observed that on examination of the project records and documents furnished under the Real Estate (Regulation and Development) Act, 2016, the PAN Oasis project comprised a total of 2,084 units, consisting of 2,051 residential flats and 33 commercial shops. It was noted that the Occupancy Certificate for the said project was issued on 17.01.2018. The DGAP further found that the total saleable area of all the 2,084 units was 30,80,033 square feet, out of which 1,865 units having a saleable area of 27,22,093 square feet had been sold prior to the issuance of the Occupancy Certificate, while the remaining 219 units having a saleable area of 3,57,940 square feet were sold thereafter. Accordingly, the DGAP held that the said 219 units sold after the issuance of the Occupancy Certificate were outside the scope of the present investigation, being exempt suppli....
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....hi in its order dated 29.01.2024. 8. It is further observed that the Central Government, on the recommendation of the GST Council, levied GST at the rate of 18% on construction services, with one-third abatement towards the value of land, resulting in an effective GST rate of 12% on flats, vide Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. Accordingly, based on the figures contained in Table "A" above, the recalibrated base price and the excess realisation (profiteering), during the post-GST period have been computed and are set out in Table "B". "Table-B" Table-B (Amount In Rs.) Particular Post-GST S.No. Period A 1 Ratio of Credit availed to purchase Value as per Table-A Above (%) B 8.008/80.97 2 Increase in Input Tax Credit availed post-GST (%) C 0.009% 3 Purchase value of goods and services (Excluding Taxes and Duties) during Post-GST Period (as per Para 20 supra) (in Rs.) D 51,67,44,601 4 Total Savings on account of additional ITC benefit (in Rs.) E=D*C/100 46,507 5 Total Area of project (As per Para 16 supra) (in Sq. Ft.) F 30,80,033 6 Total Savings ....
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....ribunal had carefully considered the investigation report submitted by the DGAP dated 10.01.2025, the Respondent's unqualified acceptance thereof, the documentary evidence on record, the verified Statutory Auditor-certified financial statements, and the mathematical computations which remain uncontested by the Respondent and Applicant. This Tribunal finds that: 12.1. While profiteering to the quantified extent of Rs. 40,096/- (comprising base amount Rs. 35,800/- plus GST Rs. 4,296/-) did initially arose from the Respondent's pricing structure in the post-GST period due to the marginal increase in the ITC ratio of 0.009 percentage points; 12.2. The Respondent has fully acknowledged the said profiteering and has tendered a Demand Draft of Rs. 40,096/- for discharge of its obligation under Section 171 of the CGST Act, 2017; 12.3 The Respondent undertakes to pass on the said benefit to the eligible 1,865 home buyers in proportion to their respective unit areas, as detailed in the DGAP Report; and 12.4 The Respondent shall pay interest on the profiteered amount in terms of Rule 133(3)(b) of the Central Goods and Services Tax Rules, 2017, as applicable to each eligibl....