TMI Blog2022 (6) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... to recalibrate the price of the flat due to additional benefit of ITC. Hence, the allegations of the Applicant No. 1 made in this behalf are incorrect and therefore, the same cannot be accepted. The Authority finds that the Respondent has not contravened the provisions of Section 171 (1) of the CGST Act, 2017 and there are no merit in the Application filed by the Applicant and the same is accordingly dismissed. - Case No. 19/2022 - - - Dated:- 7-6-2022 - SH. AMAND SHAH CHAIRMAN TECHNICAL MEMBER SH. PRAMOD KUMAR SINGH, TECHNICAL MEMBER SH. HITESH SHAH TECHNICAL MEMBER Present:- 1. None for the Applicants. 2. None for the Respondent. ORDER 1. The present Report dated 25.02.2021 received on 26.02.2021 has been received from the Director General of Anti-Profiteering (DGAP) after investigation under Rule 129 (6) of the Central Goods Service Tax (CGST) Rules. 2017. 2. The DGAP vide the above said Report dated 25.02.2021 has stated the following points:- i. Standing Committee on Anti-profiteering, received an Application filed by the Applicant No. 1, under Rule 128 of the Central Goods and Services Tax Rules, 2017, alleging profiteering in respe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) which had been placed in Chapter XXI of the Central Goods and Service Tax Act pertaining to Miscellaneous provisions state the following: - Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. On the reading of above provision of the section, it was clear that the provision of Section 171 of CGST Act, shall apply only in two cases: (i) Reduction in rate of tax, and (ii) The benefit of ITC by way of commensurate reduction in price was to be passed on to the recipient. (b) The agreements between the Respondent and the buyers of residential project were executed on 06.02.2019, vide which the terms condition for the allotment, consideration including taxes other conditions had been mentioned. (c) All the events i.e. allotment of the Flats on 01.02.2019, agreements between the Respondent the Buyers executed on 06.02.2019 and construction activities started on 10.04.2019, occurred within GST regime. The transaction between the Builder the Buyer was covered by clause (b) of paragraph 5 of Schedule II of the CGST Act from the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (h) The consideration for the sale of Flat was duly agreed between the Respondent and the buyer @ 4,000/- per square feet on carpet area basis, besides balcony area @ 500/- per square feet. Further, GST as applicable too was payable extra. The Builder-Buyer agreement containing all the terms conditions of allotment was duly executed on 06.02.2019 onwards between the Respondent the successful applicant. (i) The construction activities on the aforesaid project were started on 10.04.2019 and thereafter, during GST regime. Vide the aforementioned letters, the Respondent submitted the following documents/information :- Copies of GSTR-1 returns for the period July, 2017 to November, 2020. Copies of GSTR-3B returns for the period July, 2017 to November, 2020. GSTR-9 9C for the FY 2017-2018. Copy of Tran-I Electronic Credit Ledger for the period July, 2017 to November, 2020. Copies of VAT returns (including all annexures) and Service Tax returns for the period April, 2016 to June, 2017. Copies of all demand raised to the Applicant. Details of Applicable tax rates, Pre-GST and Post-GST. Copy of Balance Sheet for the year 2017-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ana Real Estate (Regulation and Development) Rules, 2017. xiv. The date of first tax invoice for demand cum allotment letter i.e. 01.02.2019, allotment of units, Builder Buyers Agreements, start of construction activities, receipt of payments etc. have taken place in post-GST. Neither the above Applicant nor the Respondent had given any document to prove that any booking for the project was done in pre-GST period. Therefore, there was no pre-GST tax rate or input tax credit structure which can be compared with the post-GST tax rate and input tax credit. There was no availability of CENVAT to compare Input tax credit which was available to him post GST era. Hence, the base price in pre-GST era could not be computed to compare price charged in post-GST. It was also observed that the price charged for the said residential flat was for a new project developed and constructed by the Respondent after implementation of GST. xv. Section 171 of the Central Goods and Services Tax Act, 2017 comes into play in the event when there was a reduction in the rate of tax or there was an increase in the benefit of input tax credit. In the present case, since the project itself was launched afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of flats in the Respondent's project Roselia-2 , Gurugram, Haryana by Applicant No. 1. The project was an Affordable Housing project as per the Haryana Affordable Housing Policy, 2013 notified by Town Country Planning Department, Government of Haryana vide Notification dated 19.08.2013. The Licences for the project No. 63/2017 dated 03.08.2017 was granted by the Town and Country Planning and RERA vide No. 18/2018 dated 12.10.2018 in the post GST period. The DGAP vide his Report dated 25.02.2021 has submitted that The Applicant No. 1 had been allotted flat no. 1804 in Tower J of the Project on 29.07.2019 and the first tax invoice issued for demand cum allotment to the Applicant No. 1 was also 29.07.2019, these fact have also not been opposed by the Applicant No. 1. The first draw of lots for allotment of flats was conducted on 01.02.2019 in the presence of the committee constituted under the Affordable Housing Policy, 2013. The first Builder Buyer agreement (BBA) between the homebuyers and the Respondent was executed on 06.02.2019 i.e in the post GST period. Also the construction activities in the said project were started on 10.04.2019. The chronology of above events sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
