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2022 (8) TMI 1457 - NATIONAL ANTI-PROFITEERING AUTHORITYProfiteering - purchase of flat - Respondent had not passed on the benefit of ITC to him by way of commensurate reduction in the price of Flat - contravention of of Section 171 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- It is clear from the plain reading of section 171 (1) that it deals with two situations:- One relating to the passing on the benefit of reduction in the rate of tax and the second on the passing on the benefit of the ITC. On the issue of reduction in the tax rate, it is apparent from the DGAP"s Report that there has been no reduction in the rate of tax in the post-GST period. Hence, the only issue to be examined is whether there was any net benefit of ITC with the introduction of GST. The Authority finds that the ITC, as a percentage of the turnover, that was available to the Respondent during the pre-GST period (April 2016 to June 2017) was 0.92%, whereas, during the post-GST period (July 2017 to December 2019), it was 4.26%. This confirms that in the post-GST period, the Respondent has benefited from additional ITC to the tune of 3.34% (4.26%-0.92%) of his turnover, and the same is required to be passed on by him to the recipients of supply, including the Applicant No. 1, if not already passed on. The Authority finds that the computation of the amount of ITC benefit to be passed on by the Respondent to the eligible recipients works out to Rs. 1,45,87,404/-. This Authority concurs with the DGAP's report dated 28-10-2020. The Authority determines that the Respondent has profiteered by Rs. 1,45,87,404/- in respect of the project "Ruparel Orion" during the period from 1-7-2017 to 31-12-2019 which includes Rs. 86215/- of the Applicant No. 1 and orders refund/return/passing on of the profiteered amount, if not already done, along with the interest @18% thereon, from the date, when the above determined profiteered amount was profiteered by him till the date of such payment, in line with the provisions of rule 133 (3) (b) of the CGST Rules 2017 - This Authority under Rule 133 (3) (a) of the CGST Rules, 2017 orders that the Respondent shall reduce the prices to be realized from homebuyers/customers/recipients commensurate with the benefit of ITC received by him.
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