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TMI Blog2024 (1) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... T regime. There was no price history of the units sold in the pre-GST regime that could be compared with the post-GST base prices to establish whether there was any profiteering by the Respondent or not. Hence, there was no pre-GST turnover or ITC which could be compared with the post-GST turnover or ITC. On this basis, the DGAP has reported that the Respondent had neither benefited from additional ITC nor had there been a reduction in the tax rate in the post-GST period and therefore it did not qualify to be a case of profiteering. Therefore, the Commission observes that no benefit of additional ITC during the GST period as compared to the pre-GST period has accrued in the case of this Project to the Respondent, which he is obliged to p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... follows:- i. A reference was received from the Standing Committee on Anti-profiteering on 14.03.2022 on which a Notice under Rule 129 of the CGST Rules was issued to the Respondent by the DGAP on 24.03.2022, calling upon him to reply as to whether he admitted that the benefit of ITC had not been passed on to the Applicant No. 1 by way of commensurate reduction in price and if so, to suo moto determine the quantum thereof and indicate the same in his reply to the Notice as well as furnish all supporting documents. Vide the said Notice, the Respondent was also given an opportunity to inspect the non-confidential evidences/information furnished by the Applicant No. 1 during the period from 04.04.2022 to 05.04.2022. However, the Respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification no. 03/2019-Central Tax (Rate) dated 29.03.2019. (c) The Respondent submitted that the Applicant No. 1 had withdrawn his complaint against him and the same was informed to the DGAP vide e-mails dated 26.03.2022 and 12.08.2022. v. The DGAP found from the verification/scrutiny of documents submitted by the Respondent and his replies that there was no sale or allotment of the flats in the above project in the pre-GST regime. The following observations were also made by the DGAP:- i) The first booking was made by the Respondent in the project on 27.10.2018 i.e. in post-GST period. The DGAP, on scrutiny of the documents submitted by the Respondent i.e. Demand letters of the Applicant No. 1, date of first booking of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect developed and constructed by the Respondent after implementation of GST. Hence, the anti-profiteering provisions did not apply to the impugned project under investigation. vii. Section 171 of the Central Goods and Services Tax Act, 2017 came into play in the event when there was a reduction in the rate of tax or there was a benefit of ITC. In the present case all the events i.e. allotment of units, agreement, booking and construction activities had taken place in post-GST era. Since the project itself was started after implementation of GST w.e.f. 01.07.2017, there was no pre-GST turnover or ITC that could be compared with the post-GST turnover or ITC, to determine whether there was any benefit that was required to be passed on by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he DGAP's Report that the Respondent had started the above project in the post-GST regime as the commencement certificate was issued to him on 23.08.2018 by the Pune Municipal Corporation and there wasn't any demand raised by the Respondent in the pre-GST regime. There was no price history of the units sold in the pre-GST regime that could be compared with the post-GST base prices to establish whether there was any profiteering by the Respondent or not. Hence, there was no pre-GST turnover or ITC which could be compared with the post-GST turnover or ITC. On this basis, the DGAP has reported that the Respondent had neither benefited from additional ITC nor had there been a reduction in the tax rate in the post-GST period and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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