No Profiteering Where Additional ITC Benefit Passed on to Homebuyers { Director General of Anti-Profiteering v. Samridhi Realty Pvt. Ltd TS-542-GSTAT(DEL)-2026-GST}
Facts
- Proceedings were initiated against the developer alleging that it had failed to pass on the benefit of additional Input Tax Credit to homebuyers as required under Section 171 of the CGST Act.
- During the investigation, the DGAP found that the developer had already passed on the ITC benefit to the concerned homebuyers, and the buyers acknowledged receipt of the benefit. No other purchaser objected to the DGAP’s findings
Issue
Whether anti-profiteering proceedings under Section 171 of the CGST Act can be sustained where the developer has already passed on the additional ITC benefit to homebuyers.
Held
- The GSTAT, Delhi held that no profiteering is established when the developer has duly passed on the additional ITC benefit to homebuyers.
- Since the statutory benefit had already been transferred and acknowledged by the buyers, the Tribunal concluded that Section 171 of the CGST Act was not violated and closed the anti-profiteering proceedings.
