No Penalty for Profiteering if Input Tax Credit Under GST Deny: NAA

M/s Horizon Projects Pvt. Ltd has been found guilty by 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 for profiteering although the penalty has not been imposed for refusing the gains of Input tax credit (ITC) because there is no penalty charged if ITC denies it.

The petitioner claimed profiteering upon the respondent, M/s Horizon Projects Pvt. Ltd. that the respondent has not pass the advantage 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 Petitioner with respect to the buyers of the flat with effect from July 2017 to June 2018, as per the outlines of Section 171 (1) of the CGST Act, 2017.

Section 112 of the Finance Act, 2019 particular penalty procurements has added to breaking of the procurements of Section 171(1) that has come strength with effect from January 1, 2020, by inserting Section 171(3A).

From the period of July 1, 2017, to March 30, 2018, there was no penalty, said by the Chairmen Dr B.N Sharma, the authority head. Under section 171(3A) the designated penalty to the respondent will not be imposed, when the respondent violated the plan under section 171(1).

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“Accordingly, the notice dated December 18, 2019, issued to the Respondent for the imposition of penalty under Section 171(3A is hereby withdrawn and the present penalty proceedings launched against him are accordingly dropped,”