TaxTMI 
TaxTMI 
2026 (4) TMI 358
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....rred to as "the Act") started on the basis of a complaint raised by Sh. Govindbhai A. Patel, Ramlila Govindbhai Patel& Sh. Gunjan Govindbhai Patel, 401, Iscon Arcade, Near Lal Bungalow Char Rasta, C. G. Road Bridge, Ahmedabad - 380 009 (hereinafter referred to as "the Applicant") before the Standing Committee on Anti-profiteering. 2. The same was examined by the Standing Committee on Anti-profiteering and forwarded minutes of meeting dated 28.05.2025 to the Directorate General of Anti-Profiteering(hereinafter referred to as DGAP) to conduct a detailed investigation in respect of the applications filed under Rule 128 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as "the Rules"), by the above Applicant alleging....
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....l input tax credit of GST paid on all the inputs and input services as they had not opted new scheme as mentioned in Para 3(b) above, hence profiteering had to re-worked out in the instant investigation up to 31.05.2025. e. Out of total 180 villas, 89 Villas having area 23,989 Sq. Mts. were constructed, booked and handed over in the post-GST regime. That remaining 91 Villas (180-89) having area 23,271 Sq. Mts. were either constructed or booked in the pre-GST regime. Therefore, these 91 Villas having area 23,271 Sq. Mts. are covered in the present investigation. f. As per CA certified Annexure II submitted by the Respondent vide submission dated 20.10.2025, he has availed Input Tax Credit of GST for the period July, 2017 to....
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....espondent during the pre-GST period was 8.64 % and during the post-GST period, it was 9.95%. Hence, the ratio of input tax credit as a percentage of expenses incurred on purchase of input goods and services in the post GST period has increased from erstwhile regime to the present GST regime. Therefore, there appears to be apparent savings made by the Respondent on account of introduction of GST as contemplated under the observations made by the Hon'ble High Court of Delhi in the impugned order dated 29.01.2024. h. It is also observed that the Central Government, on the recommendation of the GST Council, had levied 18% GST (effective rate was 12% in view of 1/3rd abatement for land value) on construction service, vide Notification N....
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....s such the Respondent has saved/profiteered an amount of Rs. 1,07,78,857/- plus GST @12% Rs. 12,93,463/- totaling to Rs. 1,20,72,320/-. Therefore, in terms of Section 171 of the Act, the benefit of such additional input tax credit was required to be passed on to the homebuyers. 4. W.e.f. 01.10.2024, the Central Government, on the recommendations of the GST Council has empowered the Principal Bench of the GST Appellate Tribunal (GSTAT), constituted under sub-section (3) of section 109 of CGST Act, 2017, to examine anti-profiteering cases in terms of Notification No. 18/2024-Central Tax dated 30.09.2024. 5. The above report was received in the Pr. Bench, GSTAT on 22.10.2025. A Notice dated 09.12.2025 was issued to the Respondent directi....
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....per the DGAP Report, percentage / ratio of Input Tax Credit to purchase value has been increased by 1.31 %. Respondent has also agreed with the report of the DGAP and expressed willingness to refund the profiteered amount of Rs. 1,07,78,887/- plus GST @ 12% i.e. Rs. 12,93,463/-, totalling to Rs. 1,20,72,320/-. Further it is to be noted that the said benefit was not passed on to the home buyers by the Respondents in terms of Section 171 of the CGST Act till date. 10. In view of the foregoing, the Tribunal concludes that respondent derived benefit of additional input tax credit as per findings of DGAP after the introduction of GST and such benefit has to be passed on to the homebuyers in terms of Section 171 of the CGST Act. 11. The oth....
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....litude of Section 171 by which the authority is empowered to ensure that a reduction in tax rate or the Input Tax Credit availed results in a commensurate reduction in the price of goods or services clearly encompasses within it the power to ensure that such conduct which leads to profiteering does not take." The Provisions with respect to interest are as follows:- Rule 133(3)(b) - return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with the interest at the rate of eighteen percent from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount including interest not returned, as the case may be. 13. Ke....