GST Update

Desk of CA. Praveen Sharma – 938 Series (CAPS) 

This matter before the GST Appellate Tribunal, Delhi (Principal Bench), arose from an investigation report dated 28.11.2024 submitted by the Director General of Anti-Profiteering (DGAP). The proceedings were initiated on the basis of a complaint filed by Shri Abhay Yagnesh Desai, alleging that M/s Axis Infratech LLP had failed to pass on the benefit of Input Tax Credit (ITC) to homebuyers in its “24K” residential project at Vadodara.

The investigation focused on 11 buyers who had purchased flats prior to the issuance of the Completion Certificate dated 16.05.2019. Units sold after the completion certificate were kept outside the scope of examination.

Upon analysis, the DGAP calculated that the total ITC benefit required to be passed on to eligible buyers amounted to Rs. 25,78,971 (inclusive of GST). This computation was based on the increased ITC ratio available under the GST regime compared to the pre-GST period.

However, during verification, it was found that the Respondent had already passed on a total amount of Rs. 42,03,560 to the 11 eligible buyers. This amount exceeded the determined liability.

A minor shortfall of Rs. 17,829 was identified in respect of one buyer, Shri Mukesh B. Kewalramani (Flat No. 1101). The Respondent accepted the finding and subsequently transferred the said amount through NEFT to the concerned buyer, and proof of payment was placed on record.

During the hearing held on 29.01.2026, it was confirmed that the Respondent had fully complied with the requirement of passing on ITC benefits.

Accordingly, the Tribunal accepted the investigation report and closed the proceedings, holding that the Respondent had discharged its statutory obligation towards eligible homebuyers.

LINK:: CA. Praveen Sharma on Linkedin

Regards
CAPS