NAA_IO_10_2022
Puma Realtors Pvt Ltd
GST - Anti-Profiteering - The present proceedings arise out of a report received from the DGAP pursuant to Interim Order passed by the NAA u/r 133(5)(a) of the CGST Rules, against the Respondent - The order is specifically in respect of a residential housing project developed by the Respondent-company and in respect of which a case had been registered u/s 171 of the CGST Act - The NAA had directed the DGAP to examine all the projects executed by the respondent-company to determine whether the provisions of Section 171 had been contravened - On receipt of the directions, the DGAP issued notice u/r 129 of the CGST Rules calling upon the Respondent to specify whether benefit of input tax credit had not been passed on the recipients of the residential units by way of reduction in price - The respondent was also directed to suo motu determine the quantum thereof - The DGAP furnished its report stating that the documents furnished by the Respondents were not enough to conclude whether or not the Respondent had benefitted from additional ITC in post-GST and if so whether the benefit of ITC had been passed on by commensurate reducion in prices as per Section 171 of the CGST Act - The DGAP further observed that Corporate Insolvency Resolution Process under the IBC was initiated against the Respondent - The Resolution Plan filed was duly approved and implemented.
Held - Section 171 and Rules thereunder impose an obligation on the NAA to ensure that there is no profiteering in case of reduction of tax rates or availability of ITC to suppliers to determine profiteered amount and to ensure that the profiteered amount so ascertained is passed on to the recipient of such supply along with interest - The DGAP is also obligated to furnish a report in relation to profiteering, if any - In the present case, the DGAP has apparently not conducted the investigation as directed by the NAA since the report of the DGAP is silent on the aspect of profiteering, if any, by the respondent - No investigation is done in terms of Section 171 of the Act and Rules - Hence the DGAP is directed to investigate the relevant aspects and file a fresh report, based on which the Authority would consider what action to be taken: NAA
- Application Disposed of: NAPA
NAA_IO_09_2022
Town Park Buildcon Pvt Ltd
GST - Anti-Profiteering - The present matter arises from an application filed against the respondent-company in respect of a residential project developed by the respondent - It was alleged that the respondent had not passed on the benefit of reduction in ITC by way of commensurate reduction in prices - Upon investigation, the DGAP reported that the credit of VAT paid by the respondent on purchase of inputs was not considered in the calculation of ITC ratio to taxable turnover ratio; that the respondent benefitted from additional ITC only to the tune of 7.20% of the turnover and the amount profiteered included the amount of ITC that was required to be passed on.
Held - The Authority observes and concurs with the findings recorded in the DGAP's report, namely that the respondent did not furnish the relevant assessment orders passed by the VAT Authorities & hence those could not be incorporated in computing the profiteered amount - The Authority finds that the ITC of VAT as much as is allowed for the relevant period, shall be incorporated into the computation of profiteered amount by the DGAP - Hence the DGAP is directed to ascertain the authenticity of VAT assessment orders submitted by the respondent for the relevant period, in computation of profiteered amount by including the same as ITC - Profiteered amount be re-computed: NAA
- Application disposed of: NAPA
NAA_IO_08_2022
Prateek Infra Projects India Pvt Ltd
GST - Anti-Profiteering - The present application pertains to a residential unit developed by the respondent-company - The applicant charged the respondent with having profiteered from sale of flats by not having passed on commensurate benefit of ITC pursuant to reduction in rate of tax.
Held - The respondent has furnished a set of documents on the basis of which the DGAP has determined the profiteered amount - The applicant too furnished relevant documents - The DGAP is directed to verify which of these documents is authentic and then calculate the profiteered amount accordingly: NAA
- Application disposed of: NAPA
NAA_IO_07_2022
Elan Ltd
GST - Anti Profiteering - The present application is filed in relation to a construction project executed by the Respondent-company - The NAA had taken suo motu cognizance of a project executed by the Respondent and directed the DGAP to investigate such project and submit report u/r 129(6) stating whether the Respondent is liable to pass on benefit of ITC to the buyers of the said project - Later, the DGAP conducted investigation and tabled it's report, wherein it was mentioned that the project being investigated had been launched in the post-GST period and the project was commercial in nature, due to which the provisions of Notification No 03/2019-CT(R) were inapplicable - It was also stated that there was no change in the rate of tax w.e.f. 01.04.2019 and was charging 12% GST on Construction services provided to prospective buyers - The Respondent was also found to not have availed CENVAT/ITC related to the project in question - No demand was raised and no advance for this project was given in the pre-GST period - Hence the DGAP held that the provisions of Section 171 were inapplicable onto the Respondent.
Held - The Authority considering the facts and circumstances of the matter at hand as well as the relevant documentary evidence, concurs with the report of the DGAP: NAA
- Application disposed of: NAPA
NAA_IO_06_2022
Samridhi Realty Homes Pvt Ltd
GST - Anti Profiteering - The present application pertains to a residential project developed by the Respondent-company - It had been alleged that the Respondent did not pass on benefit of ITC by way of commensurate reduction in proce despite having charged 12% GST on the remaining payments payable by the purchasers - The Respondent claimed that the DGAP did not allow ITC of VAT in the pre-GST regime calculations, which resulted in inflated ITC benefit amount, despite the fact that the Respondent availed ITC on VAT during the relevant period, which was evidenced through the statutory VAT records.
Held - It is seen that the Respondent did not produce the necessary documents to establish its claim of the DGAP not having allowed ITC of VAT in the pre-GST regime calculations, which resulted in inflated ITC benefit amount, despite the fact that the Respondent availed ITC on VAT during the relevant period - Now that the documents are available, the matter warrants re-consideration on part of the DGAP: NAA
- Application disposed of: NAPA
