The Goods and Services Tax Appellate Tribunal (GSTAT) at Delhi has upheld anti-profiteering proceedings against Siddha Infradev LLP and directed the builder to refund ₹63.93 lakh, along with 18% interest, to nine eligible homebuyers after finding that it failed to pass on the benefit of additional input tax credit in its Kolkata housing project.
A single-member bench of Technical Member Anil Kumar Gupta ruled, “Procedural delays by a statutory authority, in the absence of any prescribed consequence for lapse of such timeline, cannot be allowed to defeat the substantive rights of consumers.”
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The proceedings have emerged from a complaint via two homebuyers who alleged that the builder had levied 12% GST, although it failed to pass on the benefit of the additional ITC in the “Siddha Sky” residential project in Kolkata.
The DGAP initially calculated the profiteered amount to be ₹1.88 crore. However, following remand proceedings and a reevaluation prompted by the Delhi High Court’s decision in the case of Reckitt Benckiser India Pvt Ltd v. Union of India, the methodology for this calculation was revised.
Instead of using the earlier ITC-to-turnover approach, the new method compares the ratio of credit availed to the purchase value of goods and services.
The DGAP, while applying the revised methodology, concluded that Siddha Infradev had received an additional ITC benefit of 8.69% in the post-GST period and profiteered ₹57.08 lakh. With 12% GST, the total payable amount is Rs 63.93 lakh for nine eligible pre-GST homebuyers.
The builder contended that the Standing Committee’s reference to the DGAP was invalid due to being beyond the two-month limitation period.
The claim has been rejected by the tribunal, and held that the timeline was directory and not mandatory.
As per the builder, GST collected on the alleged profiteered amount cannot be included in the refund as the tax had earlier been deposited with the government.
Refusing the claim, the tribunal relied on the rulings of the Delhi High Court in Reckitt Benckiser.
“By compelling the buyers to pay the additional Goods and Services Tax on a higher price, the supplier has not only defeated the intent of the Governments but has also acted against the interest of the consumer,” the tribunal quoted from the High Court judgment.
The builder further contested the imposition of interest, arguing that the parent law did not explicitly authorise it and that the rules should not exceed the statute’s provisions.
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In response, the tribunal rejected this submission, asserting that the provision requiring 18% interest was both valid and enforceable.
The Tribunal held that penalty proceedings were enforced for the period from January 1, 2020, onwards, though the builder can avoid the 10% penalty by depositing the profiteered amount within 30 days of the order.
The tribunal asked Siddha Infradev LLP to submit a compliance report to the jurisdictional CGST/SGST commissioner, proving the refund of the profited amount, including interest, within 3 months.
| Case Title | DG Anti Profiteering vs. Siddha Infradev LLP |
| Case No. | NAPA/138/PB/2025 |
| GSTIN/Temporary ID/UIN | 19ACIFS4407P1ZH |
| Appeal Case Reference no. | NAPA/138/PB/2025 |
| Delhi GSTAT | Read Order |
