TaxTMI 
TaxTMI 
2026 (8) TMI 836
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt CHS Ltd. on introduction of GST w.e.f. 01.07.2017, in terms of Section 171 of the Central Goods and Services Tax Act, 2017. 2. The complainant alleged that the Respondent had failed to pass on the benefit of Input Tax Credit (hereinafter referred to as "ITC") by way of commensurate reduction in price, upon the introduction of GST w.e.f. 01.07.2017, in contravention of Section 171 of the CGST Act, 2017. 3. The complaint was examined by the Standing Committee on Anti-Profiteering, which, upon being satisfied, forwarded the matter to the Directorate General of Anti-Profiteering (hereinafter referred to as "the DGAP") on 08.05.2024 the minutes of which were received in DGAP office on 27.09.2024 4. It is noted that the Directorate General Anti-profiteering (DGAP) investigated the project " Madhu Vasant CHS Ltd." executed by M/s. Amal Realtors and submitted its report dated 29.01.2025 under Rule 129(6) of the CGST Rules, 2017. 5. Upon completion of the investigation, the DGAP submitted its Report dated 29.01.2025 to the Principal Bench, GSTAT, which has been summarised as below: 5.1. The DGAP investigated for the period 01.04.2015 to 31.03.2019 as the Respondent h....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Credit of VAT availed 4. Total Credit availed in Pre-GST Period 4,86,064/- 5. Net ITC of GST availed 54,53,421 6. Ratio of Credit availed to Purchase value 8.26% 7.87% Difference (-0.39) 5.6. From the above computation, the DGAP observed that the ratio of credit availed to purchase value had decreased from 8.26 % during the pre-GST period to 7.87% during the post-GST period, resulting in No ITC benefit to the Respondent. 5.7. In view of the above findings, the DGAP concluded that the Respondent had not accrued the ITC on account of the implementation of GST and hence the provisions of Section 171(1) of the Central Goods and Services Tax Act, 2017 had not been contravened by the Respondent in the present case. 6. With effect from 01.10.2024, the Central Government, on the recommendations of the GST Council, empowered the Principal Bench of the GST Appellate Tribunal (GSTAT), constituted under sub-section (3) of Section 109 of the CGST Act, 2017, to adjudicate anti-profiteering cases in terms of Notification No. 18/2024-Central Tax dated 30.09.2024. 7. The above R....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s and CA-certified figures may be subjected to independent arithmetical and documentary verification; the authority may specifically examine whether any benefit has been selectively passed on to certain customers and the basis thereof; an independent competent authority may be directed to verify the matter from the customer's perspective and place a transparent report on record; and such other order may kindly be passed as may be deemed fit in the facts and circumstances of the case. 9. In the view of the submissions filed by the Applicant, the Respondent and the DGAP were directed to file their submissions within two weeks. The DGAP in its clarifications, stated that:- 9.1 The Respondent has executed multiple projects, and the returns and the legal documents such as balance sheet etc. depict the number of all the work undertaken by the Respondent. It is not possible to bifurcate the same for a single project. Thus, the investigation is based upon the duly CA-certified data submitted by the Respondent. The Figures are pointed out by the applicant in Annexure -1, II and IV are CA certified and the figures are exclusive for the project "Madhu Vasant CHS Ltd. 9.2 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....2025, 18.12.2025, 16.01.2026, 19.03.2026, 17.04.2026, 14.05.2026, 22.05.2026, 03.07.2026 and 23.07.2026 in hybrid mode. On the final hearing dated 23.07.2026, Sh Rahul Rao Gautam, AAD, appeared on behalf of the DGAP. Shri Avadhoot Janardhan Sansare, Complainant and Shri Shailash Udeshi, Chartered Accountant appeared virtually for the Respondent. Conclusion 12. We have carefully considered the DGAP Reports, the written submissions and additional written submissions filed by the Applicant, the clarifications furnished by the DGAP and the Respondent pursuant to the directions of this Tribunal, and the material available on record. 13. It is observed that the project "Madhu Vasant CHS Ltd.", in respect of which the Applicant has filed the application, comprises 36 residential units having a total saleable area of 26,714 sq. ft. Out of these, 21 flats were allotted free of cost to the existing society members, for which no monetary consideration was received. Of the remaining 15 flats, 10 flats were booked under the 5% GST scheme without ITC, pursuant to Notification No. 03/2019-Central Tax (Rate) dated 29.03.2019. Accordingly, only 5 flats fall within the scope of the present....