Where the ratio of input tax credit to purchase value declined post-GST, no additional benefit accrued and Section 171 was not contravened.
The Principal Bench of the GST Appellate Tribunal, exercising anti-profiteering jurisdiction, has accepted a re-investigation report of the Director General of Anti-Profiteering concluding that an Ahmedabad developer did not contravene Section 171 of the CGST Act in its project “Krish Elite” [DGAP v. Savaliya Procon].
Justice Mayank Kumar Jain, Member (Judicial) noted that the matter had been remanded by the Competition Commission of India for re-investigation in light of the Delhi High Court’s decision in Reckitt Benckiser India Pvt. Ltd. v. Union of India. Of 401 units, the DGAP considered 175 booked before receipt of Building Use permission.
The DGAP found that the ratio of credit to purchase value fell from 6.55% in the pre-GST period to 5.77% for July 2017 to June 2019, so no additional ITC benefit had accrued. The respondent accepted the report in full, and the complainant, contacted through email, WhatsApp, the portal and post, conveyed his agreement.
The Tribunal accepted the report and directed that the order be communicated to the jurisdictional CGST and SGST Commissionerates.
2026-juristway.com-3112-GSTAT(New Delhi-[PB])-GST
