TaxTMI 
TaxTMI 
2026 (8) TMI 1117
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.... Post-GST is 16.91. Therefore, Section 171 of the CGST Act, 2017 has been contravened by the Respondent. The DGAP calculated Profiteered amount as Rs. 25,52,40,017/- for the period 01.07.2017 to 31.03.2024. The DGAP claimed to have pass on ITC benefit of Rs. 40,69,57,530/- to its homebuyers. Therefore, DGAP stated that the net ITC benefit to be passed on by the Respondent to the homebuyers amount to Rs. 5,95,56,344/-. The calculation of the profiteered amount is given in Table 'A' and 'B' below:- Table 'A' Sl.No. Particulars Pre-GST Period (upto June 2017) Post-GST Period (01.07.2017 to 31.03.2024) 1 Credit of Central Excise Duty and Service Tax availed (A) 1,60,05,020 - 2 Credit of VAT availed (B) 6,88,47,604 - 3 ITC of GST Availed (C) - 54,04,28,308 4 Total Credit Availed (D = A+B+C) 8,48,52,624 54,04,28,308 5 Purchase Value of Goods and Services (Excluding Taxes and Duties) (E) 1,31,02,27,000 3,19,65,00,000 6 Ratio of Credit Availed to Purchase Value (in %) (F = D*100/E) 6.48 16.91 Table 'B' Sl.No. Particulars Post-GST 1 Period A July, 2017 to March, 2024 2 Ratio ....
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....eipts and financial records and it was distributed across all eligible homebuyers, not selectively. c. The Respondent has also provided list of buyers to whom benefit was passed (Annexure 1), Details of cancelled/disputed units (Annexure 2), and Documents relating to the complainant (Annexure 3). d. It is implied that there is no profiteering, as the benefit has already been transferred. e. The complaint lacks merit in light of documented compliance. f. Respondent submitted that ITC benefit has been duly passed on to all eligible buyers, including post 31.03.2024, supported by receipts and affidavit. g. It was contended that the alleged profiteering amount (~Rs.5.95 crore) is overstated and stands substantially reduced based on actual benefit passed. h. Respondent claimed that benefit passed is in excess, including a 7% discount on BSP, and there was no intention to profiteer. i. It was argued that DGAP methodology is flawed, ignores excess benefit and causes financial prejudice, leading to artificial profiteering. 6. The DGAP filed its clarifications dated 23.12.2025 on the Respondent's WS dated 10.12.2025. The same....
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....ry report dated 21.07.2026. The same has been summarized as below:- a. The calculation of profiteering amount is as: Table-'A' (Amount in Rs) Sl.No. Particulars Pre-GST Period (2011-12 to June 2017) Post-GST Period (01.07.2017 to 31.03.2024) 1 Credit of Central Excise Duty and Service Tax availed (A) 1,60,06,000 - 2 Credit of VAT availed (B) 6,88,48,000 - 3 ITC of GST Availed (C) - 51,05,57,857 4 Total Credit Availed (D = A+B+C) 8,48,54,000 51,05,57,857 5 Purchase Value of Goods and Services (Excluding Taxes and Duties) (E) 1,31,02,27,000 3,19,65,00,000 6 Ratio of Credit Availed to Purchase Value (in %) (F = D*100/E) 6.48 15.97 From the above table-'A', it reveals that the input tax credit as a percentage of the purchase value that was available to the Respondent during the pre-GST period was 6.48% and during the post-GST period was 15.97% in Project "Parx Laureate". This clearly confirms that the Respondent had benefited from additional input tax credit during post-GST. b. Based on the figures contained in table-'A' above, the comparative figures of the ratio of inp....
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....ding GST@12%) ITC benefit claimed to have been passed on Benefit of ITC to be passed on Remark A B C D E F=(D-E) G 1 Buyers to whom no benefit is to be passed on 142 574118 Post OC buyers (as discussed in para 17 above) 2 186 223467.58 Unsold Units (as discussed in para 17 above) 3 6 27644 2,23,159 Cancelled units (as discussed in para 17 above) 4 Settled through Court 1 4874 Settled through Supreme Court Meditation Centre (as discussed in para 17 above) 5 Buyers to whom excess benefit has been passed on* 410 1579251.39 7,28,55,288 43,40,60,422 -36,14,28,293 Annex-12 6 Buyers to whom benefit is to be passed on 22 82982 38,28,192 27,81,139 10,47,053 Annex-13 7 2 7992 3,68,693 3,68,693 8 1 (Applicant) 3302 1,52,331 73,455 78,876 Total 770 25,03,630.97 7,72,04,504 43,71,38,175 14,94,622 f. From the above table 'C', it is observed that out of the t....
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....he CGST Act 2017. In support of the claim, the Respondent submitted copies of tax invoices/receipts. On verification of the documents submitted by the Respondent, it is found that "Discount @ 7% u/s 171(1) of the CGST Act, 2017" is mentioned in the tax invoices/receipts issued by the Respondent to the buyers. Therefore, it is established that the Respondent has passed on substantial benefit of ITC to its buyers. 14. For the question no. "c" above, the Respondent is liable to pay interest on the amount determined to have been profiteered and, if so, to what extent, it is to mention that Section 171 of the CGST Act, 2017 casts a statutory obligation upon the Respondent to pass on the benefit of additional ITC to the recipients by way of commensurate reduction in prices at the time of supply. Consequently, where such benefit is not passed on in the manner mandated under the statute, the recipients are deprived of the monetary benefit to which they are legally entitled from the date of supply itself. 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 re....
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....26, the learned Counsel for the Respondent submitted additional written submissions basically raising the following issues. The same is quoted below:- i. It is submitted by the Respondent that:- a. waived off interest on delayed payment of consideration by certain Customers, whereas b. in certain cases, the said interest has been paid by the Customers. ii. It is thus, submitted that interest is not liable to be paid to the Customers where interest on delayed payment of consideration has been waived off by the Respondent. Hence, it is humbly prayed before this Hon'ble GSTAT to kindly waive off the interest payment on the amount of benefit to be passed to the said Customers. iii. It is further submitted that with respect to the Customers who have paid interest on delayed payment of consideration to the Respondent, interest liability shall be payable at the same rate of interest as paid by the said Customers; to be computed from the following dates:- a. With respect to Customers whose final payment has been received in the GST Regime, interest is to be computed from the date of said last & final payment; and b. With re....
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....the consideration for the said Flat/Unit is outstanding. The Respondent shall credit the amount of benefit to the account of the said buyer, which shall be reduced from the amount payable towards cost of flat. This submission is accepted in the sense that in the final settlement / payment by this allottee shall be appropriately reduced giving the credit of the ITC to be passed on to the said allottee along with interest at the rate of eighteen (18) percent calculated from 01.07.2017. 19. It was also submitted by the Respondent that the substantial amount of consideration is receivable from the Shri Manoj Kumar Pawa (Original Complainant) towards the cost of Flat/Unit namely, Flat No. 7081, Tower Nectarine. It is submitted that the Respondent shall credit the amount of benefit to the account of the Shri Manoj Kumar Pawa (Original Complainant), which shall be reduced from the amount payable towards cost of flat. We are not ready to accept this contention raised by the Respondent, as it is brought to our notice that the dispute between Respondent and Original Complainant is pending before the consumer forum. So, any question that relates to monetary consideration between the Res....