NAA Instructs GST Commissioners to Ensure the Passing of Profiteering Amount to Flat Buyers

All the Central Goods and Services Tax (CGST) commissioners and State Goods and Services Tax (SGST) commissioners were advised by National Anti-Profiteering Authority (NAA) to ensure that the eligible buyers of flats and apartments are getting the Profiteering Amount and were ordered to submit a report of compliance within 4 months from the receipt date of the order.

The order was issued after keeping in mind the hearings of the case of Abhishek Singh & Director General of Anti-Profiteering vs. M/s. Aparna Constructions and Estates Pvt. Ltd., under which it was observed that the company did not transfer the benefit of Input Tax Credit (ITC) A complete guide for understanding the basics of input tax credit and it calculation with detailed examples under GST (Goods and Services Tax) India to the respective buyers and it was a violation of Section 171(1) of the Central Goods and Service Tax (CGST). The company was also held liable for providing a penalty for the same.

The applicant, Abhishek Sing, had purchased a flat of Aparna Constructions and Estates Pvt. Ltd. under the project building named ‘Aparna Serene Park’ but was denied the benefits of Profiteering Amount by the company stating that the buyer was provided with the flat at a lower price hence was not provided with the amount as a way to commensurate the amount less received.

The National Anti-Profiteering Authority (NAA) Get to know about complete guide of the anti-profiteering rules under GST in India. Also, we have attached Indian government provisional orders headed by chairman B. N. Sharma and the technical members J. C. Chouhan and Anand Shah found that the applicant, Abhishek Singh, had every right to ask for the Profiteering Amount and the company was a defaulter for not providing the same.

The Authority further advised the Central Goods and Services Tax (CGST) commissioners and State Goods and Services Tax (SGST) commissioners to ensure that an appropriate Profiteering Amount is being passed to all the eligible buyers of flats and apartments and submit the report for the same.