GST Appellate Tribunal, New Delhi
DG Anti Profiteering, Director General of Anti-Profiteering, DGAP v. Maata Rani Builders and Developers
For revenue
NAPA NO. 54 (PB) OF 2025
GST Appellate Tribunal, New Delhi
NAPA NO. 54 (PB) OF 2025
Where builder failed to pass on additional ITC benefit by actual price reduction for Anamika Apartment flats despite providing some extra construction work free of cost, such act did not meet section 171 mandate and builder was held liable to pass on Rs 99,435 with GST and interest to affected homebuyers, as per DGAP's accepted computation and methodology
Where respondent failed to pass on benefit of GST reduction to two homebuyers during specified period, respondent was mandatorily liable to return differential amount along with interest at 18 percent per annum from date of collection till actual payment, as provisions under Rule 133(3)(b) and Section 171 are compulsory once profiteering is established
Where contravention of anti-profiteering measure continued from 1 July 2017 to 31 October 2020 and penalty provision under Section 171(3A) became effective from 1 January 2020, liability for penalty arose only for non-passing of benefit during post-insertion period, with statutory relief available if profiteered amount was deposited within thirty days from order date
Section 171 of Central Goods and Services Tax Act, 2017/Jharkhand Goods and Services Tax Act, 2017 - Rule 133 of Central Goods and Services Tax Rules, 2017/Jharkhand Goods and Services Tax Rules, 2017; Section 171, read with section 171(3A), of Central Goods and Services Tax Act, 2017/Jharkhand Goods and Services Tax Act, 2017
This summary is for general information and is not legal advice. Read the full decision and the applicable law before relying on it.
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Delhi High Court
Where developer of residential project was charged with profiteering on computation of ITC benefit for homebuyers, DGAP on remand quantified benefit using purchase value against project cost and area-wise distribution, conforming with remand directions and distinct from methodology earlier rejected, no breach of jurisdiction or legal error arose thus, no interference with GSTAT order upholding DGAP report was warranted GST: Where anti-profiteering assessment for petitioner’s project compared actual post-GST ITC including goods and services with NIL pre-GST availed credit as per ST-3 returns, and petitioner admitted non-availment of eligible pre-GST CENVAT on services, calculation based on actual availment rather than entitlement was correct and exclusion of services ITC from computation was unjustified GST: Where petitioner challenged anti-profiteering computation on grounds of increased GST rate and argued rate-led ITC was not a benefit, authorities upheld DGAP's project-level saving and base profiteering methodology as fair, reasonable, and responsive to project features, finding no error in quantification or ground to interfere with GSTAT affirmation, recalculation demands for actual economic benefit under Section 171 was to be rejected GST: Where DGAP's methodology included GST at 12 percent on base profiteered amount for a builder's project by treating GST collected on excess realization as part of profiteering, such quantified inclusion was lawful and aligned with precedent, and no illegality in GST addition was found, hence no basis for writ interference on this aspect GST: Where homebuyers of residential project raised profiteering complaint and GST authoriti…
GSTAT New Delhi
Where cinema retained admission ticket prices after GST rate reduction from 18% to 12% for tickets up to Rs 100 during Jan to Mar 2019 and increased base prices instead of reducing gross prices, this constituted profiteering under Section 171 as amounts belonging to consumers were not passed on, irrespective of cost or market factors, requiring deposit of profiteered sum with interest in consumer welfare fund
GSTAT New Delhi
Where residential project developer failed to pass on additional ITC benefit post-GST, and DGAP recomputation properly excluded reversed unutilised ITC, methodology and revised profiteering amount of Rs. 2.62 lakh plus interest were to be accepted, making developer liable to pass on said amount with 18% interest to eligible homebuyers