Home Case Index All Cases GST GST + NAPA GST - 2020 (6) TMI NAPA This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (6) TMI 248 - NAPA - GSTProfiteering - purchase of Flat in the Respondent's project “Hero Homes” - allegation that the benefit of reduction in the rate of tax or ITC had not been passed on - contravention of provisions of Section 171 of the CGST 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 pertaining to 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. It is clear from the DGAP Report that the Respondent had launched the subject project in the post-GST regime and there wasn't any demand raised by the Respondent in the pre-GST regime. The registration and approval of the project, launching of the project and receipt of the payments had taken place in the post-GST regime and hence, there was no pre-GST tax rate or ITC structure which could be compared with the post-GST tax rate and 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 does not qualify to be a case of profiteering. The instant case does not fall under the ambit of Anti-Profiteering provisions of Section 171 of the CGST Act, 2017. Therefore, the allegation that the Respondent has not passed on the benefit of ITC in this case is not found sustainable - Application dismissed being not maintainable.
|