GST: NAA directs DGAP to further investigate Profiteering against DRA Adithya Project [Read Order]

The National Anti-Profiteering Authority (NAA) directed the Director-General of Anti-Profiteering (DGAP) to further investigate profiteering against DRA Adithya Project.

The Applicant alleged the profiteering by the Respondent, DRA Adithya Project in respect of purchase of a flat in the Respondent’s project “Pristine Pavilion Phase-Ill”. The Applicant had alleged that the Respondent had not passed on the benefit of input tax credit (ITC) to him by way of commensurate reduction in prices and charged 12% GST on the amount due to him against payments.

The Respondent has claimed to have passed on the ITC benefit of Rs. 57,87,995 on account of the profiteering established against him for the period from July 2017 to March 2019.

Therefore, the Respondent is also liable to pass on interest at the rate of 18% on the profiteered amount to the flat buyers from the dates from which he has received the additional amount of consideration from them till the passing on of the ITC benefit, as he has used this amount in his business, as per the provisions of Section 171 (1) of the CGST Act, 2017 read with Rule 133 (3) (b) of the above Rules.

It has not been explained in the Report of the DGAP whether the Respondent has passed on the ITC benefit along with the applicable interest or not. Accordingly, the same is also required to be computed by the DGAP.

Therefore, the NAA headed by the Chairman Dr. B.N. Shrama without going in to other merits of the present case held that the Report furnished by the DGAP cannot be accepted directed to further investigate the present case under Rule 133 (4) of the CGST Rules, 2017 up to 31.10.2020 or till the date of grant of implementation of the GST which is also required to be verified.

“If required the DGAP shall be at liberty to take the assistance of the field Tax Authorities of the Central and the State Government who are directed to extend all cooperation to the DGAP in terms of Rule 136 of the CGST Rules, 2018 and Para 38 of the “Methodology & Procedure” framed under Rule 126 of the CGST Rules, 2017 notified on 28.03.2018 by this Authority. The respondent is also directed to extend all assistance to the DGAP during the course of further investigation of the present case,” the NAA said.