Desk of CA. Praveen Sharma – 973 Series (CAPS)

GSTAT Delhi (PB) in the case of DG Anti Profiteering, Director General of Anti-Profiteering (DGAP) vs Pacific Development Corporation

A complaint was filed by homebuyers alleging that a builder charged higher tax than applicable in a housing project. The matter was investigated and financial records were examined.

It was found that after GST implementation, the builder received additional input tax credit benefit, which should have been passed on to buyers through price reduction. However, this was not done.

The builder accepted the findings and agreed to refund the amount. The request to waive or limit interest was rejected, as the benefit should have been passed at the time of sale.

Accordingly, the builder was directed to refund the amount along with interest. Penalty provisions were also noted, subject to compliance within the prescribed time.

LINK: CA. Praveen Sharma on Linkedin

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CAPS