Delhi (PB) GSTAT Dismisses GST Profiteering Case After ITC Benefit Found to Be Nil

Delhi (PB) GSTAT's Order in the Case of DGAP vs. M/s. Riddhi Siddhi Construction

The Director General of Anti-Profiteering (DGAP) conducted an investigation against M/s. Riddhi Siddhi Construction (the Respondent) is to determine whether the benefit of additional Input Tax Credit (ITC) was passed on to homebuyers following the rollout of GST.

The investigation was carried out in accordance with the methodology approved by the Hon’ble Delhi High Court in the Reckitt Benckiser case.

The original applicant/ homebuyer in the proceedings notified the authorities through email that the GST-pertinent cases had been settled with the builder while taking possession and expressed no objection to the closure of the matter.

Issue- Whether the respondent breached Section 171 of the CGST Act, 2017, by failing to pass on the advantage of ITC to the receiver of the housing services.

GST Appellate Tribunal: The GST Appellate Tribunal (GSTAT) accepted the report of DGAP, which concluded that no other ITC advantage had accrued to the respondent after the GST execution. The Tribunal mentioned that the applicant had settled their concerns with the builder and requested the closure of the case.

The Bench, thereafter, said that no breach of section 171 of the CGST Act was there. The proceedings against the respondent were closed officially, and no obligation for the refund or penalty was established.